The Reserve Bank of India (RBI) raises trading targets for primary dealers in the government bond market by 48%, aiming to improve liquidity, according to people familiar with the development. The change is intended to increase activity among bond market makers, particularly in the 10-year benchmark security, where trading activity reportedly rises after the adjustment. The Business Standard describes the policy as part of the RBI’s broader effort to deepen liquidity in sovereign debt, an area the central bank has emphasized as a priority. While the outlets focus on the same objective, Bloomberg notes the increase in activity in the 10-year benchmark as evidence of the policy’s immediate impact. The RBI’s action follows the central bank’s recent communication of liquidity goals, including points attributed to Governor Sanjay Malhotra earlier this month. Neither source provides further operational details such as the exact methodology for the new targets, the implementation timeline, or whether other securities are affected.
RBI raises bond-trading targets for primary dealers to boost sovereign liquidity
The Reserve Bank of India (RBI) raises trading targets for primary dealers in the government bond market by 48%, aiming to improve liquidity, according to people familiar with the development. The cha...
- The RBI increases bond-trading targets for primary dealers by 48%.
- The stated goal is to boost liquidity in India’s sovereign bond market.
- Trading activity increases, including in the 10-year benchmark government security.
- The change is described as part of the RBI’s broader push to deepen liquidity in sovereign debt.
- Governor Sanjay Malhotra has highlighted improving liquidity as a priority earlier this month.
The move underscores the RBI's push to deepen liquidity in sovereign debt, a priority that Governor Sanjay Malhotra highlighted this month
3 months agoThe Reserve Bank of India raised trading targets for the country’s bond market makers in a bid to boost liquidity, driving a surge in activity in the 10-year benchmark security, according to people familiar with the development.
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