Indian bond traders who were expecting the central bank to keep the cash spigot open may have to rework their calculations. It will hold additional rounds if needed, the central bank said late Tuesday evening. The RBI bought a record 3 trillion rupees of debt in the year ended March, helping cool bond yields, and has since spent a further 500 billion rupees on such purchases. It also introduced a forex swap tool to inject rupee liquidity as an alternative to debt buys. “It is probably needed in order to handle the liquidity surplus that has been built up over the past few weeks."

Source: Mint July 03, 2019 05:37 UTC