When Modi govt is seen borrowing more, rate cuts fail to boost bonds

The concerns persist even after an assurance from a government official that the borrowing plan remains unchanged

September is shaping up to be a brutal month for Indian bonds, and traders are hoping the government’s borrowing plans this week will offer some relief.

Benchmark 10-year rupee yields have climbed almost 20 basis points since end-August, driven by fears that a $20 billion tax cut could boost an already bloated bond supply. Even an expected interest-rate cut by the central bank on Friday -- the fifth for the year -- has done little to aid sentiment.
 

All eyes are now on the government’s financing plans for the fiscal second half due Monday, with traders concerned that the authorities could