Banks seek higher supply of longer-tenure bonds in the second half

A trader at another PD said that the introduction of 20-year bonds seems unlikely

Lenders (or banks) are advocating for the government to augment the supply of bonds in longer tenure in the second half (H2) of the current financial year, market participants said.

The Reserve Bank of India (RBI) has been engaging in consultations with market participants as part of the process of finalising the borrowing calendar for the second half.

"Banks have requested to increase the supply in longer tenure and minimise the supply in shorter tenure. Because we are seeing that there is hardly any spread between short-term and long-term paper, and inversion is there. So in order to reduce the