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Bond dealers urge RBI to step in and buy debt as yields stay elevated
Bond traders are pressing the RBI to buy government debt and ease auction rules as elevated yields and liquidity pressures raise borrowing costs across India’s debt markets.
Indian bond traders have called on the Reserve Bank of India (RBI) to purchase government securities and relax auction norms to ease rising borrowing costs. Persistent supply pressures and elevated yields have squeezed liquidity across the bond market. Dealers argue that RBI intervention through open market operations could stabilize yields and support credit flow. While the central bank remains cautious, economists suggest a partial intervention could help manage fiscal borrowing smoothly. The appeal reflects growing concerns about high funding costs dampening corporate investment momentum.