The fall in government security yields is likely to help banks recover part of the Rs 30,000 crore treasury losses they reported in the fourth quarter of FY26 ended March 31, 2026, said bankers. Over the past week, government bond yields have declined by 25-30 basis points, reversing the earlier trend. This relief comes at a time when tighter liquidity conditions, volatility in global markets and rising domestic inflation pushed yields higher had taken government bond yields above 7% for most part of the fourth quarter.