Government's ₹17.2 lakh crore borrowing may spike bond yields
Business
India's government is planning to borrow a massive ₹17.2 lakh crore in 2026-27—higher than market expectations.
This move comes as bond yields are already creeping up, with the 10-year yield rising from 6.5% to 6.7% over just three months.
RBI might step in to stabilize situation
Economists like Sakshi Gupta warn that this extra borrowing could push bond yields even higher, especially since investors right now prefer shorter-term bonds.
Bonds with five to 15 years left might see less demand.
Meanwhile, a bond dealer expects the Reserve Bank of India to step in and keep things steady, saying the 10-year yield is likely to move in the 6.65% to 6.8% range.