Indian government bonds rallied sharply after the RBI announced ₹2 trillion in bond purchases and a $10 billion forex swap to ease liquidity. Market experts Lakshmi Iyer of Bajaj Alternate Investment Management and Dhawal Dalal of Edelweiss AMC said the move helped calm bond markets amid tight liquidity and rising yields. While Iyer sees limited room for further rate cuts, Dalal expects yields to fall further in 2026 as liquidity improves and inflation cools.
