No dearth of liquidity, but RBI sees little demand for govt bonds

Indian govt bonds are the "good stuff" and must sell. It's the only way tax-strapped authorities can raise money and spend it to shake the economy out of its Covid-19 stupor

A vigilante and a gambler walk into a bond market. No, that’s not the start of a new joke, just the comical look of India’s fixed-income saloon nowadays. There’s no dearth of liquidity, but the bartender — the central bank — is having a tough time getting orders for the good stuff even by cajoling and threatening customers.

At the same time, potent but risky hooch is selling briskly, although the lawman — the Federal Reserve — is almost at the door.

Indian government bonds are the “good stuff” and must sell. It’s the only way tax-strapped authorities can raise