India's Bond Market Awaits April-September Borrowing Plan Amid Yield Consolidation

Indian government bond yields are expected to remain steady as traders await the borrowing plan for April-September 2025. The benchmark 10-year bond yield, currently at 6.6022%, has hit its lowest level since January 2022, with projections ranging between 6.58% and 6.62%. The government plans to borrow ₹14.82 trillion in the next financial year starting April 1, up from ₹14.01 trillion raised this year. The Reserve Bank of India has bolstered market liquidity with bond purchases worth ₹2.83 trillion and forex swaps, fueling expectations of monetary easing. The borrowing calendar, set to be announced today, will determine the quantum of frontloading and issuance patterns critical for market dynamics.

 

Source: Reuters