India considers plan to reduce short-term borrowing as yields surge

India is considering a proposal to reduce treasury-bill sales next quarter as short-term borrowing costs surge, people with knowledge of the matter said.

The government may avoid incremental borrowing via the bills and only borrow to meet its previous repayment needs in the next quarter, the people, asking not to be identified as they aren’t authorized to speak to the media, said. Another option is to cancel sales if the yields demanded by investors are too high, they said.

Borrowing costs at treasury-bill auctions have surged to the highest in more than three years amid tight