Indian Bonds Tumble on Near-Record Borrowing, Focus Turns to RBI
- Benchmark 10-year yield rises 16 basis points, most since May
- Gross borrowing target for FY22 set at 12 trillion rupees
Nirmala Sitharaman on Feb. 1.
Photographer: T. Narayan/BloombergThis article is for subscribers only.
A sell-off in Indian sovereign bonds on a higher-than-expected debt issuance plan is putting the spotlight on the Reserve Bank of India to calm yields.
The yield on the benchmark 10-year bond rose sixteen basis points to close at 6.06%, its biggest jump since May, while the rupee declined 0.1% to 73.0275 after Finance Minister Nirmala Sitharaman on Monday outlined a gross borrowing plan of 12 trillion rupees ($164 billion). The announced plan for the 12 months starting April was more than the 10.6 trillion rupees estimated in a Bloomberg Survey of fifteen analysts.