The RBI reduced its main rate by an unconventional 35 basis points to 5.4%, the lowest since 2010
The proposal has been criticised by former heads of the Reserve Bank of India, economists and allies of the ruling BJP
The plan, if it does go ahead, may need to be revised, according to Kenichi Kurahashi, a Tokyo-based chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co
They say it is anti-patriotic as it could create long-term risks for the economy, potentially allowing rich foreign nations and their financial institutions to dictate the country's policies
Gadkari said the government might raise funds by issuance of bonds and proposed an attractive rate of return of around 7.5-8 per cent
Global drivers are also supportive as US yields harbour expectations of a dovish US Fed and a likely rate cut at the meeting later this month
The issue of raising bonds overseas has come up several times in discussions
Issuances of Government of India-Fully Serviced Bonds (GoI-FSBs) shot up during FY19 and accounted for 0.34% of GDP
If it is a long-term bond, take the option of paying tax on accrual basis
Laddering can also help investors deal with reinvestment risk
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Bond yields 380 bps higher than average earnings yield of BSE500 companies
As the bond rout deepens, the one group who actually wants to buy the debt looks set to remain shut out of most of the market
There was no immediate comment on the report from the RBI, which holds its next policy review on February 6-7
The yield on the 10-year bond maturing in 2018 fell to 7.22 per cent, from 7.38 per cent on Tuesday
Transparent disclosure is vital in an emerging democracy where crony capitalism has haunted policy-making for decades
Chidambaram said the move to scrap the bonds was an attack on the middle class
A total of Rs 15,000 crore in bonds were auctioned on Friday by the RBI, which manages debt on behalf of the govt
India's govt bonds have slumped since August due to a potential end to monetary easing, concern about rising supply and possible fiscal slippage
Giving access to treasury bills would be detrimental to banks' savings deposits, said bond market experts