“In what market participants are seeing as an early indication from Indian authorities on interest rates, the Central bank Reserve Bank of India (RBI) partially cancelled an auction of shorter duration government security to curb any further spike in bond yields,” traders said on Friday (September 11, 2026).

The RBI accepted bids worth only ₹45.06 billion ($471.12 million) for the 6.20% 2029 bond, just over 40% of the planned borrowing in the paper of ₹110 billion. The RBI sold seven-year bond at slightly higher than expected yield, while a new 30-year paper was auctioned at a cutoff yield that was in line with estimates. The three-year or 6.20% 2029 bond yield was dealt at 6.4566%, up 25 basis points in last four weeks since it was issued.