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India bond traders urge Reserve Bank of India to step in with debt buys as yields stay elevated
Traders in India’s government-bond market are calling on the RBI to execute open-market bond purchases and change auction rules after yields remained stubbornly high despite rate cuts. At a meeting with primary dealers, participants proposed switching to uniform-price auctions and urged the central bank to buy up to ₹1.5 trillion (~US$17 billion) in bonds to calm markets and rein in borrowing costs. The demand-supply mismatch, weak long-term investor participation and recent liquidity drains via forex intervention have left yields and funding costs under pressure.
Economic Times• By struti
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neutral
India bond traders urge Reserve Bank of India to step in with debt buys as yields stay elevated
Traders in India’s government-bond market are calling on the RBI to execute open-market bond purchases and change auction rules after yields remained stubbornly high despite rate cuts. At a meeting with primary dealers, participants proposed switching to uniform-price auctions and urged the central bank to buy up to ₹1.5 trillion (~US$17 billion) in bonds to calm markets and rein in borrowing costs. The demand-supply mismatch, weak long-term investor participation and recent liquidity drains via forex intervention have left yields and funding costs under pressure.
Economic Times• By struti
Explore:High Return Equity Mutual Fund
neutral
India bond traders urge Reserve Bank of India to step in with debt buys as yields stay elevated
1 min read
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Bond-market dealers ask RBI for bond-buy action and auction rule changes to ease elevated yields and liquidity stress.
Traders in India’s government-bond market are calling on the RBI to execute open-market bond purchases and change auction rules after yields remained stubbornly high despite rate cuts. At a meeting with primary dealers, participants proposed switching to uniform-price auctions and urged the central bank to buy up to ₹1.5 trillion (~US$17 billion) in bonds to calm markets and rein in borrowing costs. The demand-supply mismatch, weak long-term investor participation and recent liquidity drains via forex intervention have left yields and funding costs under pressure.
Traders in India’s government-bond market are calling on the RBI to execute open-market bond purchases and change auction rules after yields remained stubbornly high despite rate cuts. At a meeting with primary dealers, participants proposed switching to uniform-price auctions and urged the central bank to buy up to ₹1.5 trillion (~US$17 billion) in bonds to calm markets and rein in borrowing costs. The demand-supply mismatch, weak long-term investor participation and recent liquidity drains via forex intervention have left yields and funding costs under pressure.
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economy
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india
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