Skip to content

G-Sec Yield Spread Widens to 48 bps on RBI Easing

21 June 20251 min read
ECONOMYG-Sec Yield SpreadWidens to 48 bpson RBI Easing21 June 2025safalsetu.com

Why in the news

The gap between short and long government bond yields widened sharply amid RBI easing.

Key facts

MeasureLevel
Spread, January 20254 bps
Spread, start of FY2615 bps
Spread now48 bps
3-year yield5.83%
10-year benchmark6.31%

About G-Secs

  • Sovereign debt issued by RBI for the Government of India.
  • Short-term under 5 years; long-term usually 10 years or more.

Exam angle

  • Terms: basis point, CRR, yield spread.

Test yourself

1. The yield spread between India's 3-year and 10-year G-secs widened to how many basis points in FY26?

The spread reached 48 bps.

2. By how many basis points did RBI cut the CRR, as cited alongside the widening yield spread?

A 100 bps CRR cut is cited.

3. What was the benchmark 10-year G-sec yield in these notes?

The 10-year benchmark yield was 6.31%.