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Economy· August 17, 2026 at 11:44 a.m.

India's Short-Term Bond Yields Rise as Dollar Window Closes Early

India's Short-Term Bond Yields Rise as Dollar Window Closes Early

Key takeaways

  • RBI closed dollar funding window early
  • Short-term bond yields increased
  • Investors seeking alternative sources of dollar liquidity

India's short-term bond yields have increased following an early closure of a dollar funding window by the Reserve Bank of India (RBI). The RBI announced on Thursday that it would close the window, which allows Indian banks to borrow dollars from the central bank, earlier than expected. This move has led to a rise in short-term bond yields as investors seek alternative sources of dollar liquidity.

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