India's Central Bank Chief Can't Seem to Please Everyone
- ‘The RBI has effectively killed the volatility:’ Choudhary
- Measure of sovereign debt price swings at lowest in a decade
Raghuram Rajan.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
It’s hard to please everyone. While Reserve Bank of India Governor Raghuram Rajan’s success in curbing bond price swings has made it easier for the government to sell debt, it has dismayed traders who thrive on volatility.
A year ago, investors were calling for the central bank to provide liquidity support as rising yields caused sovereign auctions to fail. Now that RBI’s debt purchases are mitigating the impact of Prime Minister Narendra Modi’s record borrowing plan on yields, a gauge of historical volatility has dropped to the lowest level in a decade.