Top Indian banks have flagged the RBI they’re brushing up against internal limits on government bond holdings 🔹 45–55% for PSU banks 🔹 15–20% for private banks
⚠️ demand already hit last week’s auction ₹288.9B raised vs ₹341.5B planned.
📈 The 10Y yield spiked +19 bps in August the biggest jump since Sep 2022.
Liquidity is tightening. Demand is cracking. The bond stress is real.
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🚨 Bond Pressure Rising in India
Top Indian banks have flagged the RBI they’re brushing up against internal limits on government bond holdings
🔹 45–55% for PSU banks
🔹 15–20% for private banks
⚠️ demand already hit last week’s auction
₹288.9B raised vs ₹341.5B planned.
📈 The 10Y yield spiked +19 bps in August the biggest jump since Sep 2022.
Liquidity is tightening. Demand is cracking.
The bond stress is real.