RBI's big liquidity move gives Indian bonds a boost
Indian government bonds just got a lift after the Reserve Bank of India (RBI) rolled out a massive ₹2.90 lakh crore ($32.4 billion) liquidity plan.
The news sparked optimism, pushing the benchmark 10-year yield down to 6.57%.
Basically, the RBI is stepping in to ease worries about too much government debt and make bond auctions smoother.
Here's what's happening
The RBI will buy ₹2 lakh crore worth of government bonds in four rounds between December 29 and January 22, and will conduct a $10 billion dollar-rupee swap on January 13 as part of its liquidity operations.
So far in 2025, their total bond purchases have hit a record ₹6.5 lakh crore—part of ongoing efforts to keep money flowing smoothly and support stability as more government debt is expected to hit the market between January and March next year.