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RBI's Bond Hustle: Time to Drop More Cash on Yields

RBI's Bond Hustle: Time to Drop More Cash on Yields

Yo, listen up! India's RBI is ready to splash some serious dough, lookin' to scoop up ₹5 trillion in bonds by March 2027. They’ve been cuttin' rates and pumpin' liquidity, but those yields just won’t budge, ya feel me? With ₹14.5 trillion already in the mix, it’s time to get those corporate bonds movin' or let the banks keep runnin' the show, g.

Quick rundown

  1. India's central bank faces transmission trouble with bond yields.
  2. RBI expected to buy up to ₹5 trillion in bonds by March 2027.
  3. Despite rate cuts, only 10% of reductions have affected bond yields.
  4. RBI's forex operations to support the rupee have drained liquidity.
  5. A potential US trade deal could ease growth concerns and bond purchases.

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