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RBI convenes primary dealers as bond yields stay elevated and liquidity tightens
RBI met primary dealers to address elevated yields and tight liquidity; markets await auction outcomes and potential intervention.
The Reserve Bank of India called meetings with standalone primary dealers and bank-affiliated dealers to review sticky government bond yields and liquidity strains after recent forex interventions. Dealers urged the RBI to consider targeted bond purchases and auction-mechanic tweaks to restore orderly pricing; officials signalled close monitoring but made no commitment to a large buy programme. Traders said the central bank cancelling a seven-year auction earlier in the week highlighted stress. Market participants will watch upcoming auction outcomes and RBI commentary for concrete support measures.