State lenders lapping up G-secs again, but is it enough to revive market?

Bonds got another reprieve Wednesday when Prime Minister Narendra Modi announced farm support prices which were largely in line with market expectations

The tide may be turning for Indian sovereign bonds as the relentless selling from government-owned banks over the past year is showing signs of easing.

State lenders, the largest holders of debt, have been net buyers in seven of the past eight sessions through July 3 for the first time since Nov 2017. They’ve added bonds worth Rs 75.91 billion ($1.1 billion) in this period, data from the Clearing Corp. of India Ltd. show.

Bonds due in 2022 and 2035 auctioned last Friday were lapped up by single bids, while all of the benchmark 2028 debt was cleared by three buyers, indicating