Indian government bonds saw a dip on the first trading day of 2026, with the benchmark 10-year yield rising to 6.6146%. This decline is attributed to anticipated supply pressures from an upcoming debt sale and a projected record quarterly borrowing of up to 5 trillion rupees by states. Traders are cautious about absorbing the fresh supply amid thin demand, with rising U.S. Treasury yields also contributing to the downward pressure on Indian bonds.