{
  "id": 13871442,
  "title": "RBI liquidity measures may pressure India bonds; rupee rally to limit losses",
  "url": "https://urgent.news/2026/10/12/rbi-liquidity-measures-may-pressure-india-bonds-rupee-rally-to-limit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-12T04:21:07.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/rbi-liquidity-measures-may-pressure-india-bonds-rupee-rally-to-limit-losses/article71573695.ece"
  },
  "original_language": "en",
  "account": "Indian government bonds may face mild selling pressure at the beginning of the week due to the central bank's liquidity absorption measures, though a potential sharp rise in the rupee could help contain losses. The benchmark 6.94 per cent 2036 bond yield could trade between 7.26-7.32 per cent, according to a primary dealer, as it previously closed at 7.2994 per cent. The RBI introduced new measures on Friday to strengthen the rupee, diverting oil companies' dollar purchases from the spot market and tightening hedging rules, as the currency is near record lows. While bond yields tend to rise as prices fall, the RBI's actions may provide a sense of stability to Indian assets. The central bank plans to sell debt amounting to ₹25,000 crore on Tuesday, and has also tightened daily reserve maintenance rules for banks starting October 16. These moves follow the RBI's recent policy rate increase and its calibrated tightening stance, suggesting more rate hikes in the months ahead. The RBI also raised its inflation forecast by 20 basis points to 5.2 per cent, while core inflation, which excludes food and fuel prices, is estimated at 4.4 per cent. India's retail inflation data for September will be released later in the day, with a Reuters poll indicating a rise of 5.4 per cent year-on-year. The benchmark Brent crude price hovers near $105 per barrel, which could influence India's inflation outlook and government finances. Overnight indexed swap rates may align with bond yields, with one-year OIS rates ending at 6.24 per cent on Friday, the two-year rate closing at 6.44 per cent, and the liquid five-year rate settling at 6.7250 per cent.",
  "summary": "Rupee support measures could limit losses as September inflation data is awaited",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "The Economic Times - Top News",
        "title": "RBI measures may boost local bond demand amid rupee pressure",
        "url": "https://urgent.news/2026/10/12/rbi-measures-may-boost-local-bond-demand-amid-rupee-pressure",
        "published": "2026-10-12T00:58:27.000Z"
      },
      {
        "outlet": "Hindu BusinessLine",
        "title": "Rupee to rally on fresh RBI measures, bonds eye inflation prints",
        "url": "https://urgent.news/2026/10/12/rupee-to-rally-on-fresh-rbi-measures-bonds-eye-inflation-prints",
        "published": "2026-10-12T02:01:47.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "RBI's Indian rupee boost to spur rally, trigger swings in forward premiums",
        "url": "https://urgent.news/2026/10/12/rbis-indian-rupee-boost-to-spur-rally-trigger-swings-in-forward",
        "published": "2026-10-12T02:47:28.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}