Business Standard

Will govt meet its fiscal deficit target? Bond traders are too skeptical

The central bank in August already approved a record Rs 1.76 trillion ($24.4 billion) payout to the government

sovereign bond
Premium

Kartik Goyal | Bloomberg
Most Indian traders are acting like the best days of the bond market are behind it as they wait for the government to blow out the budget.

But Jayesh Mehta, a veteran trader at Bank of America Merrill Lynch is a rare bull in Mumbai’s fixed-income world. He thinks fresh gains are just around the corner.

Sovereign debt sold off in the past two months on fears Prime Minister Narendra Modi will expand the record Rs 7.1 trillion ($100 billion) in borrowings to support a slowing economy. The rout diminished the impact of Asia’s most aggressive monetary-policy easing and a banking system

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in