With just two trading days in the current week and a decision likely on the government borrowing plan for the second half, the yield on government bonds are expected to remain range-bound.
While the pressure of the government’s huge borrowings in the first half (April-September) has eased, the market awaited the plan for the second half, dealers said.
The government has raised gross Rs 3,00,000 crore till September 18 in this financial year, just over three times than the amount raised a year ago. On Friday (September 25), it raised Rs 12,000 crore through auction. This was the last auction in the first half. The yield on government bonds hardened tracking cut-offs in auctions. The yield on 6.90 per cent 2019 paper rose to 7.17 per cent on September 25 against 7.09 per cent on September 18.
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