Will the RBI policy calm bond markets? Here's what analysts think

High borrowing numbers in the budget as well as absence of any steps to facilitate global bond index inclusion roiled the domestic markets, pushing the yield on the benchmark debt to 6.8

As economic recovery gains ground amid less intense coronavirus (Covid-19) waves, global central banks, including the Reserve Bank of India (RBI), have their task cut – to gradually withdraw the easy money, or liquidity support when it unveils the monetary policy decision on Thursday. 

Since the announcement of the Budget on February 01, money markets have been nervous. High borrowing numbers in the budget as well as absence of any steps to facilitate global bond index inclusion roiled the domestic markets, pushing the yield on the benchmark debt to two-year high of 6.8 per cent. This comes at a time