Mumbai, Oct. 31 -- The Central Government borrowed Rs 3.94 lakh crore during Q2-FY26 through 9 dated securities, including 4 new issuances for 5, 7, 15 and 30-year maturities. The sovereign bond yield curve continued to narrow over Q2-FY26. There was a sharp rise in benchmark bond yields in the medium to longer maturities. Market the fiscal and macroeconomic impact of the GST regime rationalization and US trade policies followed by uncertainty regarding the interest rate trajectory amid increased long-term bond issuances by both the Centre and the States. The entire G-Sec yield curve up to 50 years moved up by an average of 15 bps over the quarter with sharpest rise seen in the benchmark 10-year segment.

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