Indian bonds climb as RBI steps in to steady the market
Indian government bonds got a boost early on Wednesday, with prices rising as traders bet on the Reserve Bank of India (RBI) stepping in to support the market.
The yield on the key 10-year bond dipped to 6.67% as of 10:12am. IST on Wednesday, showing growing confidence that RBI's moves will help keep things stable.
Why does this matter?
If you care about where India's money is headed, this is big:
The RBI has already pumped liquidity into the system this year and plans another ₹500 billion bond buy on January 22.
With fewer buyers around and after ₹200 billion of securities matured in January, these moves help keep borrowing costs in check and protect the rupee—especially when global markets are shaky.
What's putting pressure on Indian bonds?
It's not just local worries—high US interest rates, wild swings in Japanese bonds, and trade tensions are making things tougher for India too.
That's why many see RBI's support as crucial right now for shoring up bond demand and the rupee.