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

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