Since July 22nd, the 10-year Government Security (G-Sec) has hardened by nearly 30 bps to trade around the 6.60% mark, reflecting a series of domestic and global developments that weighed on sentiment. Starting with, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.50% in its August policy meeting and maintained a ‘neutral’ stance, with all six members voting unanimously in favour. However, the absence of dovish cues or any clarity on the trajectory of future rate cuts disappointed the bond market. Yields surged 4–5 bps post policy outcome and closed at 6.42%, as traders reassessed expectations.
