Central Bank’s Estimated $7 Billion Support Buoys Indian Bonds
- Emkay says RBI bought $7b debt including in secondary market
- Weekly gains eroded after underwriters rescued Friday auction
The Reserve Bank of India (RBI) regional headquarters in New Delhi, India.
Photographer: T. Narayan/BloombergThis article is for subscribers only.
Benchmark Indian sovereign bonds posted their best week since December after the central bank stepped in with one of its heaviest interventions to support a market weighed down by a glut of paper.
The Reserve Bank of India probably bought 500 billion rupees ($6.9 billion) of bonds this week through announced open-market operations and discreet secondary market purchases, according to estimates by Emkay Global Financial Services Ltd. Yields on the 10-year note dipped 8 basis points, its biggest drop in 10 weeks.