New Delhi, April 15 -- Indian government bond prices climbed to their highest levels in over three years on Tuesday, with short-term bonds leading the gains after the Reserve Bank of India announced a new liquidity injection.

Market participants now anticipate continued durable liquidity injections throughout the year, following the central bank's latest move and guidance on banking system liquidity.

The Reserve Bank of India plans to purchase bonds worth Rs 40,000 crore and will also conduct a 43-day repo operation for Rs 1.50 trillion on Thursday.

This follows the central bank's second consecutive repo rate reduction last week, accompanied by a shift to an accommodative monetary policy stance.

RBI Governor Sanjay Malhotra stated las...