RBI boosts primary dealer bond targets by 48 percent. The Reserve Bank of India has raised trading targets for the country's 21 primary dealers, requiring each to trade at least 4 lakh crore dollars in bonds during the fiscal year starting April. This represents a significant 48 percent increase from the previous year's target. The move aims to enhance liquidity in India's sovereign debt market, a key priority for Governor Sanjay Malhotra. Early results show promising momentum, with daily trading volumes in the 10-year benchmark bond jumping 40 percent since April compared to March. Total bond trading activity also rose 15 percent over the same period. The RBI's initiative addresses previous liquidity challenges that emerged toward the end of the last fiscal year, when wider bid-ask spreads reflected reduced market activity.
