With India\u2019s central bank emerging as the biggest buyer of government debt, some traders are calling time on a rout that\u2019s lasted more than a year and sent benchmark yields soaring to a four-year high. The Reserve Bank of India (RBI) bought Rs 860 billion ($11.8 billion) of bonds between May and October, and plans to inject Rs 400 billion this month to replenish liquidity drained by its currency defense and a seasonal cash crunch. The purchases will help shrink the supply of paper for the fiscal second-half by 80% from a year earlier, according to estimates by Nomura Holdings. \u201cIt\u2019s unlikely that sovereign yield could flare up again,\u201d said Sandeep Bagla, associate director at Trust Capital Services in Mumbai. \u201cThe RBI is emerging as the largest buyer of government bonds as it attempts to combat a rapidly tightening liquidity scenario.\u201d The purchases have coincided with a rapid cooling in oil prices that helped drive the yearlong selloff in bonds, the worst run of quarterly losses since 2011. The cash crunch in the banking system may prompt the RBI to extend its support beyond November, according to ICICI Securities Primary Dealership. \u201cIn a perverse way, the liquidity deficit is helping bonds rally,\u201d said Gopikrishnan MS, head of foreign exchange, rates and credit for South Asia at Standard Chartered Bank in Mumbai. \u201cDemand-supply is stacking up better post OMO from RBI.\u201d The liquidity deficit, which stood at Rs 1 trillion at the end of October, fueled a spat between the government and the RBI.