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The central bank's “tandav”

By Nithin Sasikumar in BFO #247, 22 Mar, 21

It’s turning into a high-stakes battle between India’s central bank, the Reserve Bank of India and the bond markets. Bond yields—the returns that investors demand from the government bonds—are inching up, because of fears of higher inflation. The RBI has been trying to put a lid on this rise since it increases the cost of borrowing for the government. We’re written about this before here.