This reflects a global trend of central banks normalizing policy amid sticky inflation. India's move is particularly significant as it is a major emerging market, and its tightening can influence capital flows across Asia, potentially diverting liquidity away from speculative assets like cryptocurrencies.

Indian 10-year government bond

Indian 5-year government bond

India's bond yield curve is expected to flatten further as the Reserve Bank of India increases liquidity withdrawals, leading some investors to prefer 10-year debt over five-year notes.