India's 10-year government bond yield touched about 7.45% in late October 2026, its highest level since March 2023.

Higher oil prices, rising food inflation, an RBI rate hike and higher global bond yields have made investors demand a bigger return to lend to the government.

The repo rate is 5.50% after a 25 basis point hike on 7 October 2026. The RBI's stance is "calibrated tightening".

Yes. When yields rise, the value of bonds a fund already holds falls, which can lower its NAV in the short term. Longer-duration funds are more affected than liquid or short-duration funds.

Banks often raise deposit rates when borrowing costs climb, but changes vary by bank and aren't automatic.

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