India plans Rs 7.86 lakh crore bond sales in H2, trims borrowing amid yield pressure

Mumbai: The Indian government plans to raise 7.86 trillion rupees ($82 billion) through bond sales between October and March, slightly less than previously planned, as it seeks to contain rising yields and steady the market.

The country has reduced its gross borrowing for the fiscal year to 16 trillion rupees, down from 16.09 trillion rupees for the current financial year through March, and after raising 8.1350 trillion rupees in April-September.

Based on wider consultation with the central bank and market feedback, the share of all the four longer duration securities, the 15-year to 50-year bucket, has been increased in the total borrowing to 45.6%, up from 39.4% in April-September.


New Delhi has reduced the total share of borrowing through the three-year to 10-year bucket, with major relief for the five-year and 10-year securities.

Traders have said the liquid portion of the bond yield curve could see some buying interest next week, especially after witnessing heavy selloff over the last few sessions.

The government will sell 150 billion rupees of green bonds in the second half, after witnessing strong demand for such notes in April-September.

The government will sell treasury bills worth 230 billion rupees every week in October-December, a tad lower than 240 billion rupees sold on a weekly basis in the first two quarters of the financial year.

India's 10-year benchmark bond yield closed at 7.1194% on Friday, notching its sixth consecutive weekly surge.