The yield on India’s 10-year G-Sec fell to around 6.67%, slipping further to its lowest level in three weeks, following the government’s debt switch. The authorities bought back INR 755 billion of FY27-maturing bonds and issued INR 694 billion of 2040 securities, easing near-term redemption pressure and reducing gross borrowing needs. At the same time, January inflation came in at 2.75%, within the RBI’s 2%-6% tolerance band and above expectations, limiting upward pressure on yields. Supportive liquidity conditions and small declines in short- and medium-term OIS rates also helped stabilize prices. Meanwhile, the fall was partially countered by profit-taking after a four-day rally and caution ahead of the weekly debt auction. Looking ahead, investors remain attentive to upcoming auctions and broader market developments for signals on the near-term direction of yields.