Edelweiss Mutual Fund’s CURVE report highlights key trends in the Indian bond market. For the fortnight ended December 31, 2025, short-term G-sec yields remained flat, supported by anchored near-term RBI policy expectations and improved liquidity visibility, while long-term yields edged up, reflecting persistent term premium, heavy fiscal supply, and global rate uncertainty. Banking system liquidity stayed tight, driven by advance tax outflows, sustained currency leakage, and year-end balance-sheet adjustments. State Development Loan (SDL) yields hardened amid modest supply pressure and cautious duration demand, despite supportive liquidity and steady domestic growth conditions. Corporate bond yields rose amid tight liquidity, heavy government borrowing, currency pressure, and global uncertainty.

Published on January 6, 2026