New Delhi, Jan. 30 -- India's bond yields are currently (1st quarter CY 2026) driven mostly by fiscal rather than monetary policy. The upcoming budget is a major driver for Indian bond yields, but analysts do not see much variation in yields at this point in time.

Due to a combination of factors, both domestic and global, experts feel that Indian bond yields will be range-bound in the near term.

"INR (Indian Rupee) bond yields remained firm into the new year, against the backdrop of low inflation, accommodative (but cautious) policy and actively managed liquidity," according to a recent report authored by Radhika Rao, Executive Director and Senior Economist at DBS Bank.

After acting early in December policy meet, the RBI announced anot...