Why would a central bank money printing cause bond rally? Should not the rally go to assets like gold and Bitcoin? Or Indians cannot afford them anyway, hence just buy more fiat debt?
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Why would a central bank money printing cause bond rally? Should not the rally go to assets like gold and Bitcoin? Or Indians cannot afford them anyway, hence just buy more fiat debt?
Normally when a “liquidity injection” happens they buy an asset more times than not its sovereign debt like a government bond.
Arthur Hayes does a good job explaining liquidity injection here in the USA here
Correct me if I'm wrong, but the $ hints at them selling USD on hand to bolster their currency.
Whoops, I was basing this off another article, it's both printing and dollar swaps