RBI Bond Purchases Expected to Continue After Global Index Deferral Raises Yields

Indian government bond yields rose amid cautious trading ahead of a large debt auction and upcoming budget and RBI policy decisions. The Reserve Bank of India (RBI) has been buying bonds to support the market, having purchased 2.5 trillion rupees since December and planning another 500 billion rupees next week. The deferral of Indian bonds' inclusion in Bloomberg's Global Aggregate Index has increased expectations of further RBI bond purchases to offset weaker foreign inflows and manage supply pressures.