India bond, Feb. 9 -- The latest Reserve Bank of India (RBI) policy disappointed the Indian bond markets . While the central bank delivered what was widely expected on interest rates, the absence of any fresh liquidity measures proved to be a letdown for bond investors.

Indian government bonds rose on Monday. The benchmark 6.48% 2035 bond yield was at 6.7609%. The yield ended at 6.7363% on Friday.

The RBI has already stepped in aggressively this financial year, purchasing nearly Rs.7 trillion worth of bonds, a move that helped cap yields. However, with no additional bond-buying signals or liquidity support in the policy, markets are now recalibrating expectations.

In the last policy of FY26, the Reserve Bank of India's Monetary Policy ...