RBI to buy government bonds to boost liquidity

The Reserve Bank of India (RBI) will buy bonds on the open market for a total of Rs 10,000 crore ($1.35 billion) on Friday to try to keep all market segments liquid and stable, the central bank said on Wednesday. Spreads between government bonds and corporate bonds have risen in recent days because of the extreme risk aversion that has led investors to dump all assets including Indian bonds.

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