RBI’s dovish tilt softens yields, but long-end pressures persist: October 2025 fixed income outlook

Indian bond yields softened in October. The Reserve Bank of India’s dovish stance lowered expectations for interest rates. Inflation dropped significantly, boosting sentiment. However, the longer end of the bond market faced pressure. Foreign investors showed strong interest in Indian debt. The RBI is expected to conduct Open Market Operations to manage liquidity and stabilize yields.