RBI Under Pressure: Bond Traders Urge Central Bank Intervention to Ease Liquidity and Control Yields

Overview

Indian bond traders are pressing the Reserve Bank of India (RBI) to become a significant buyer of government bonds. They argue this is necessary to address tight liquidity conditions and potential imbalances between supply and demand in the bond market, especially in the second half of FY26. Traders suggest Open Market Operations (OMO) auctions as a solution to cool rising bond yields.