e, the channel that lets non-residents buy certain government bonds without quota limits. That helped push the 10-year yield down to 6.7108% on Friday after six straight weekly declines. The catch is timing. Markets are positioning for possible inclusion in Bloomberg’s Global Aggregate Index, which can pull in “passive” money from index-tracking funds that must buy whatever the benchmark adds. But Bloomberg’s January review said its next update would come in the middle of 2026, so a quiet news cycle could tempt some investors to lock in gains, especially in longer-dated bonds where positioning tends to be more sensitive to reversals.
Why should I care?
For markets: The 346 billion-rupee FAR bid is tied to Bloomberg’s mid-2026 clock.
Index-inclusion trades can be powerful because they create potential future demand that has nothing to do with growth or inflation: if the benchmark adds India, index funds have to buy. That’s why traders often “pre-position” ahead of any decision. But when the buying shows up well before the expected catalyst, the market can run out of fresh marginal buyers. If the next Bloomberg headline is simply “no change”, yields can snap back as investors take profits. That’s why India’s 10-year yield – 6.7108% on Friday, with a 6.70%-6.78% range expected this week – may react more to Bloomberg-related headlines than to routine domestic data, with long-maturity bonds usually the most exposed.