Indian bonds bounce back after big state borrowing—here's why it matters
Indian government bonds made a comeback on Tuesday, shaking off two days of losses.
Even with states borrowing a record ₹5 trillion this quarter, the market handled a fresh ₹301 billion in debt without any scary spike in yields.
The 10-year yield even dipped slightly to 6.61%, signaling things are steady for now.
Why should you care?
If you're into finance or just curious about how money moves, this is all about stability: despite massive government borrowing, bond yields stayed calm—which is good news for investors and anyone watching India's economic health.
What's behind the recovery?
State-run banks stepped up and bought ₹125 billion in bonds over three days to fill demand gaps.
Plus, the RBI pitched in by buying ₹500 billion worth of bonds on Monday and plans even more support (including a $10 billion forex swap soon).
All these moves helped keep rates steady and eased worries after last week's jitters.