On Wednesday, the G-Sec market recorded a volume of 68,495 crore, higher than the daily average volumes of 59,000 crore in August. So far in August, the yields rose by 12 bps from 6.37% on July 31. The rise in yield has been on the back of rising volumes. In August 2025, the daily average volumes jumped 34% from 44,000 crore in July 2025.
Market eyes GDP data for direction
The weakness in the market is on expectation of no further rate cut, leading to heavy sell-off in the market.
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Going ahead the market is likely to remain sideways and wait for incoming GDP data. “If that GDP print is really low, then probably we may see some sort of rally in hopes of another rate cut,” added Pawar of Ujjivan SFB.
Market participants said that the worst has been over and expect benchmark yield to recover to 6.40 levels in the short-term. However, it depends on the government securities auction on Thursday, said dealers.