06 Oct 2025 | 5 Mins Read

Low Interest Rates Favor High Returns on Debt Investment Now

Flipitmoney

Despite the RBI's recent repo rate cut from 6.5% to 5.5%, yields on government and corporate bonds have been rising, presenting attractive entry points for investors. The 10-year government bond yield has increased from 6.2% in May to 6.51%, while the 30-year yield has risen from 6.75% to 7.2%. This uptick enhances the YTM for new investments in debt instruments.