Indian bonds dip as budget jitters and big borrowing loom
Indian government bonds took a hit this week, with yields on the 10-year benchmark rising as investors worried about a flood of new debt before the upcoming federal budget.
The latest ₹320 billion bond auction only added to the nerves, with traders keeping an eye on how much higher yields might go.
Why does it matter?
With India's central and state governments set to borrow a record ₹30 trillion in the next financial year, there's real concern about whether buyers can keep up.
Even though the Reserve Bank of India has tried to ease things by cutting rates and pumping in cash—including a fresh ₹500 billion move just today—yields are still stubbornly high.
For anyone interested in how government decisions ripple through markets (and maybe your future loan rates), this is one to watch.