Rising Yields and Risks Shape Indian Debt Market Trends in 2026
Indian debt markets in 2026 show rising yields, especially in short-to-medium-term government bonds, attracting accrual-focused strategies amid global volatility. Despite higher returns and better liquidity offered by fixed income mutual funds compared to traditional fixed deposits, retail investors remain cautious or unaware of these options. Meanwhile, increased retail participation in corporate bonds and online platforms raises concerns about underestimating credit, liquidity, and product risks. Policymakers consider tax reductions to boost foreign inflows, but challenges persist.