RBI plans to meet primary dealers on bond market blues

The Reserve Bank of India (RBI) will meet a clutch of primary dealers (PDs) on Thursday, likely to discuss the recent weakness in the government securities market and gauge investor sentiment, three market participants told Mint.

- Subhana Shaikh

While the agenda for the meeting has not been formally communicated, market participants expect the discussion to revolve around elevated bond yield levels, the subdued demand seen in recent auctions, and ways to restore confidence in the market.

"RBI has called a meeting of primary dealers on Thursday to discuss market sentiment and government borrowing. This is quite important as sentiments in the g-sec market are weak, and last Friday also the central bank ended up cancelling part of the auction," said one of the people aware of the meeting.