RBI steps in early—Indian bonds get a boost
Indian government bond yields saw a slight increase on Tuesday even as the Reserve Bank of India (RBI) decided to speed up its debt buying plans, moving ₹1 trillion in purchases to January 29 and February 5.
This came as yields hit an almost year-long high.
Why does this matter?
With state governments set for record borrowing and the budget just around the corner, there's concern about excess supply and large FY27 gross borrowing.
The RBI's move helps calm markets by making it cheaper for the government to borrow money—good news for anyone watching interest rates or thinking about investments.
What's behind the RBI's decision?
The market has been tense, with liquidity running tight and big borrowing plans ahead.
By jumping in early, the RBI triggered short-covering (basically, traders rushing to adjust bets).
Analysts expect more big borrowing in the next fiscal year (FY27, starting April 2026).
Plus, there's a major ₹320 billion bond auction coming up on January 30—so keep an eye out if you're interested in how government money moves!