RBI to the rescue with likely $15 billion bond-purchase to cap yields

RBI's debt purchases will keep a lid on them even as higher inflation boosts the odds of monetary tightening

Embattled investors in India’s government bond market are hoping to see the light at the end of the tunnel as the central bank comes to their rescue.

Benchmark yields have likely peaked for 2018 after hitting a three-year high this week, and the Reserve Bank of India’s debt purchases will keep a lid on them even as higher inflation boosts the odds of monetary tightening, according to a survey of traders and fund managers.

The RBI is likely to buy 1 trillion rupees ($15 billion) of securities in the current fiscal year, the survey showed, as authorities seek to cool yields and