India is poised to sell a near-record amount of debt in the coming fiscal year, pressuring a sovereign bond market that’s increasingly worried about support from the central bank. Prime Minister Narendra Modi’s government may announce a gross borrowing plan of 10.6 trillion rupees ($145 billion) for the 12 months starting April in its budget announcement on Feb. 1, according to a median forecast of 15 analysts surveyed by Bloomberg News. That’s less than the record 13.1 trillion rupees estimated for the current year, but 75% above the previous five years’ average. As a result, the 10-year sovereign bond yield may rise about 40 basis points from current levels to 6.30% by end-December, its first advance in three years, a separate survey showed.
Bonds head for losses on Modi’s near-record debt sales
January 27, 2021
Relentless supply of sovereign debt has been the biggest hurdle for Indian bonds this fiscal
India is poised to sell a near-record amount of debt in the coming fiscal year, pressuring a sovereign bond market that’s increasingly worried about support from the central bank.
Prime Minister Narendra Modi’s government may announce a gross borrowing plan of ₹10.6- lakh crore ($145 billion) for the 12 months starting April in its Budget announcement on February 1, according to a median forecast of 15 analysts surveyed by Bloomberg News.
That’s less than the record ₹13.1- lakh crore estimated for the current year, but 75 per cent above the previous five years’ average. As a result, the 10-year sovereign bond yield may rise about 40 basis points from current levels to 6.30 per cent by end-December, its first advance in three years, a separate survey showed.
Read more about Edelweiss chief Radhika Gupta bullish on Indian stocks unfazed by prices on Business Standard. Gupta, the only female chief executive officer of a major asset manager in India, says it s "risky to be underweight equities" at a time when local stocks remain "heavily" driven by liquidity