Government securities

Debt issued by India's central and state governments and managed by the RBI. Dated securities run from about 2 to 50 years and pay a fixed coupon twice a year; Treasury bills cover maturities up to a year; and the states issue their own bonds, known as state development loans.

Prices are quoted per ₹100 of face value. A holding of ₹10 lakh face value in a 7.10% security pays ₹35,500 every six months, and its price moves inversely with yields across the life of the bond.

Banks are the largest holders, partly because the statutory liquidity ratio requires it. After the banks come insurers and pension funds, then mutual funds. Since 2021 individuals can buy directly through the RBI's Retail Direct platform, and since 2024 some bonds have been included in global bond indices, bringing in foreign money.

The ten-year yield is India's risk-free benchmark.