RBI Intervention Supports Indian Bonds and Rupee Amid Middle East Tensions

Indian government bonds gained early support amid suspected Reserve Bank of India (RBI) intervention in debt and currency markets, despite concerns over escalating Middle East tensions and rising oil prices. Data showed record bond purchases by institutional investors, including insurers and pension funds, likely reflecting RBI efforts to offset liquidity drained by foreign exchange market actions. The rupee strengthened against the dollar, easing inflation worries, while higher energy prices pose risks to India's current account and growth outlook.