The Reserve Bank of India (RBI) will meet select primary dealers and banks on Tuesday (November 4), three traders aware of the developments told Reuters, amid concerns that tightening liquidity in the banking system is pressuring the government bond market.

The meeting, though without a formal agenda, is expected to focus on current market conditions, the traders said, declining to be named as they are not authorized to speak to the media.

The RBI on Friday canceled an auction of 110 billion rupees ($1.25 billion) in seven-year government securities, triggering a seven-basis-point drop in the benchmark bond yield.

”Things have changed sharply within a few days, and what we had thought would be a continued bull-run turned out to be a short-lived phenomenon, which must be worrying for the

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