Rupee Bond Binge by Indian Firms Poised to Slow After Record Run

India’s busy local-currency rupee bond market is poised to slow after the country’s central bank hinted room for further rate cuts could be limited.

Aggressive liquidity infusions and a series of rate cuts this year, most recently a surprise 50 basis point cut to 5.5% in June, pushed yields to the lowest in three years and spurred a flurry of issuance as borrowers sought to lock in lower rates.