Indian government bonds rallied in early trade on Wednesday after the central bank announced a large liquidity injection for the coming month, easing concerns over near-term debt supply. The benchmark 10-year yield was at 6.5679% as of 9:50 a.m. IST, after closing at 6.6328% on Tuesday. Bond yields move inversely to prices. The Reserve Bank of India said it will infuse about 2.90 trillion rupees ($32.42 billion) into the banking system through open market bond purchases and a dollar-rupee swap. The RBI will buy government bonds worth 2 trillion rupees in four tranches between Dec. 29 and Jan. 22, and conduct a $10 billion three-year dollar-rupee buy/sell swap on Jan. 13.