What's behind surging bond yields and how it's upsetting govt's fiscal math

For current financial year, govt plans to borrow Rs 2.88 trillion in the first half of 2018-19, out of Rs 6.05 trillion planned for entire year

The bond market seems to have caught everyone by surprise once again. The 10-year bond yield closed at 7.54 per cent on Wednesday, rising steadily from its monetary policy day level of 7.13 per cent. 

The following day, the Reserve Bank of India (RBI) had said foreign portfolio investors could buy up to 1 percentage point more in government bonds, but in two stages, in 2018-19.

The rise in the limit was less than what the market expected. While yields were firming up, the indicative calendar for state development loans came as a shock to the bond market. The calendar