New Delhi, Feb. 12 -- The yield on 10-year government securities has risen 10 basis points over the past month, raising concerns among bond investors, as higher yields typically translate into lower bond prices.

Bond yields have hardened after the Reserve Bank of India (RBI) left policy rates unchanged and refrained from announcing fresh liquidity measures in its latest monetary policy meeting.

Market participants had been expecting the central bank to step in with liquidity support after the Union Budget 2026-27 unveiled record borrowing of Rs.17.2 trillion to fund government spending.

Higher borrowing usually leads to an increased supply of government securities, leading to higher yields with basic supply-demand dynamics at play.

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