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Bond dealers urge RBI to step in with purchases to ease government borrowing pressure
Bond dealers urged RBI to purchase government securities as yields hit 7.
Indian bond traders have called on the Reserve Bank of India (RBI) to begin buying government securities to stabilize yields and improve liquidity. The appeal follows muted demand at recent debt auctions as borrowing costs climbed. Dealers argue RBI intervention could prevent excessive volatility and support fiscal borrowing plans. The 10-year benchmark yield stayed near 7.3%, reflecting supply-demand imbalance. Economists noted the move could align with global central bank strategies amid tightening liquidity. The RBI has yet to comment officially on the proposal.