RBI convenes dealers as bond yields remain elevated and liquidity tightens

The Reserve Bank of India held meetings with standalone primary dealers and dealers from bank-affiliated firms to review sticky government bond yields and recent liquidity strains after forex interventions. Traders pressed for RBI bond purchases and suggested auction-mechanic changes to restore demand; the central bank earlier cancelled a seven-year auction when bids priced yields above comfort levels. Officials signalled active monitoring and potential targeted measures to stabilise the debt market, which calmed yields slightly in the short term but left participants alert for further action if volatility continues.