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India's Central Bank Expands Bond Market Liquidity Push

The Reserve Bank of India significantly increased trading targets for primary dealers by 48 percent, marking a major effort to inject liquidity into the country's debt markets. Activity in the 10-year benchmark bond segment is expected to rise. Separately, India is developing an electronic trading platform for bond derivatives to enhance price discovery in a market that has historically operated through over-the-counter channels. The liquidity expansion comes as major corporate borrowers position themselves to tap debt markets. Adani Power, India's largest privately-held thermal power generator, plans to raise 80 billion rupees through domestic debt offerings to fund expansion projects. The conglomerate Adani Group is also preparing a potential $1 billion US-listed dollar bond offering. Additionally, the central bank is considering directing state lenders to issue foreign-currency bonds as a mechanism to attract capital inflows and stabilize the rupee.