The Reserve Bank of India's Financial Stability Report indicates a steepening yield curve due to increased government security supply and reduced demand from insurers and pension funds. While pension funds' assets in government bonds grew, their share in high-quality liquid assets decreased. Insurance companies also saw a decline in their holdings of government and state securities as a percentage of HQLA, with both investor types showing a shift towards equity and mutual fund exposure. This trend contrasts with falling short-term rates.