For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Bond Yield Drops, Rupee Gains To 4-Week High On Cut In Govt Borrowing

|

After market hours on Monday, the government announced a cut in its borrowing programme for the fiscal year starting April. The announcement cheered the Indian bond markets with the benchmark 10-yield dropping to 7.36% as against 7.62%, its lowest since January 29.

Bond Yield Drops, Rupee Gains To 4-Week High On Cut In Govt Borrowing
 

Meanwhile rupee hits 4-week high of 64.77 against yesterday's closing of 64.87 on the back of decline in bond yield by 25 basis points.

During the period from April-September, the Indian govt plans to borrow 2.88 trillion rupees (USD 44.45 billion). Further, it said that for the full year 2018-19 it will borrow Rs. 500 billion rupees less.

The bond sale programme for the April-Sept period is about 47% of the govt's budgeted amount. The diversion from the usual practice is due to the rising bond yields and declining demand for government securities.

The move has been cheered by traders in the bond market as it worried them hugely after record borrowing by the govt as govt run banks, the major buyers, stayed away.

With the government's lower borrowing programme than the budgeted target, banking stocks gain for the second session in intraday trade on Tuesday.

Goodreturns.in

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X