New Delhi, Feb. 2 -- On Monday, February 2, Indian bond yields jumped by 8 basis points (bps) following the government's announcement of gross borrowing through government securities that exceeded expectations. The yield on the 10-year benchmark bond started at 6.740% and reached 6.778%, in comparison to the previous day's close of 6.696%.

The 10-year bond yield climbed to 6.78%, marking the highest level since January 17, 2025.

The Union Budget has estimated gross market borrowings at Rs.17.2 lakh crore for FY27, which represents a 16% rise from the budget estimate for the current year, while net market borrowing is anticipated at Rs.11.7 lakh crore to cover a fiscal deficit of 4.3% of GDP.

The yield could increase to 7% in the upcomi...