India rate cut, liquidity boost spur $2.7 billion bond rush

India's central bank cut its key repo rate by 25 basis points and increased banking system liquidity by $16 billion, leading to a $2.7 billion bond issuance by state-run companies and lenders. The move lowered government bond yields, boosting demand for long-term corporate bonds. State-run firms and lenders plan to raise 240 billion rupees in the coming weeks, with insurance companies expected to bid strongly for AAA-rated papers. The market anticipates further rate cuts.