Yields Just Keep Climbing in India Even With All That RBI Does
- Government to begin $64 billion borrowing plan this week
- More RBI steps sought despite rate cuts, liquidity injections
This article is for subscribers only.
India’s sovereign bond yields are climbing just as the government is kicking-off its record borrowing plan, in a sign of market discomfort with the heavy debt supply.
The benchmark 10-year yield extended rise on Tuesday, after jumping by the most in over a year in the previous session, in reaction to the government’s 4.88 trillion rupees ($64 billion) fund-raising plan for April-September. That’s despite the Reserve Bank of India’s recent reduction in key policy rate by 75 basis points and liquidity inducing measures to shield the economy from the coronavirus impact.