Bonds in India head for losses on PM Modi's near-record borrowing plan

The relentless supply of sovereign debt has been the biggest hurdle for Indian bonds this fiscal year, as pandemic relief efforts took precedence

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