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Record borrowing to make India's unlikely bond rally short-lived

Canceled auctions and a dovish central bank decision drove benchmark yields down by more than 20 basis points in the past two weeks.

Photo: Bloomberg
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Photo: Bloomberg

Subhadip Sircar and Ronojoy Mazumdar | Bloomberg
A relief rally driving India’s sovereign bonds could end in a few weeks.
 
Canceled auctions and a dovish central bank decision drove benchmark yields down by more than 20 basis points in the past two weeks. Half of that will unwind just before the start of India’s record borrowing plan in April, according to a Bloomberg survey of 12 analysts and traders. 

By the end of the year, 10-year yields could jump to a 2019 high as the government pushes through with an ambitious plan to sell some 15 trillion rupees ($200 billion) of debt, the survey indicates. And while

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First Published: Feb 22 2022 | 9:20 AM IST

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