<p>This paper introduces a novel application of Autoregressive Conditional Duration (ACD) models for bond liquidity analysis by exploring the relationship between trade durations and liquidity of Indian government bonds. The ACD models are utilised to decompose trade durations into their expected and unexpected components, followed by an analysis of their impact on liquidity using regression techniques. The results reveal a strong dependence between consecutive trade durations, especially for liquid bonds. These findings indicate that ACD models serve as a viable alternative to traditional liquidity measures commonly employed in government bond markets.</p>