Bonds Rally in India on Relief Over Government’s Borrowing Plans

  • Govt maintains FY20 gross borrowings at 7.1 trillion rupees
  • India pegs fiscal 2021 budget deficit target at 3.5% of GDP
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Indian bonds rallied after Prime Minister Narendra Modi’s government kept its borrowing in line with estimates, providing relief to a market that’s endured three months of declines.

Ten-year yields slid as much as 11 basis points to 6.49% on Monday before trading at 6.51% at 10:20 a.m. in Mumbai. On Friday, benchmark bonds capped a third straight month of declines.