On March 31, 2020, after the Reserve Bank of India (RBI) introduced a new foreign investment category Indian bonds rallied in trade. The sentiment was further boosted by hopes of a cut in borrowing plan for the month of April or cancellation before the borrowing plan for the first half of FY21. Bond prices and bond yield share an inverse relationship and consequently yield on benchmark 10-year government bonds fell to 6.07%.
On Monday, in line with the budget announcement, RBI unveiled a new category for foreign investors called the "fully accessible route". Under this scheme, investors can purchases all new issuances of 5-, 10- and 30-year bonds from April 1. Further, five existing bonds can also be held under the category, said the RBI.