India bonds wobble as supply, RBI cash-drain risks loom

Synopsis On Thursday, investor appetite for Indian government bonds dwindled amidst fears of increased supply and concerns over RBI’s liquidity stance. The results from the treasury bill auction reflected weak demand, driving yields upward. Speculation is building that the Reserve Bank of India may take steps to curtail excess liquidity, preparing for possible policy adjustments as inflationary pressures rise. Market analysts predict interest rate hikes within the next year. Demand for Indian government bonds faltered on Thursday as looming supply and concerns the Reserve Bank of India could drain more liquidity ahead of possible policy tightening weighed. Weak demand also…