Budget 2024: Indian Bonds rally as government lowers borrowings

Bloomberg Updated - February 01, 2024 at 12:47 PM.

The yield on the benchmark 10-year bond fell as much as nine basis points to 7.05 per cent

The government announced a lower-than-expected bond sales program for the next fiscal year, as the nation prepares for big foreign inflows on global index inclusion. Bonds rallied. 

The administration aims to borrow ₹14.13 trillion ($170 billion) in the fiscal year starting April 1, Finance Minister Nirmala Sitharaman said in her budget speech on Thursday. That’s lower than the ₹15.2 trillion estimated in a Bloomberg survey. 

The net borrowings, adjusted for maturities, are planned at ₹11.75 trillion for the next fiscal year. The yield on the benchmark 10-year bond fell as much as nine basis points to 7.05 per cent after the announcement. 

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Published on February 1, 2024 07:16

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