×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Govt borrowing plan hits debt funds

Govt borrowing plan hits debt funds
Comment E-mail Print Share
First Published: Thu, Apr 16 2009. 10 47 PM IST

The Indian debt market experienced severe volatility in March amid the announcement of the massive government borrowing programme.
Bond yields rose as the government said it planned to borrow Rs2.41 trillion between April and September. The yield on the 10-year benchmark government paper increased to 7.01% on 31 March, from 6% a month ago.
Also See Fixed-income category performance in March (PDF)
The increase affected fixed-income funds, which registered negative returns. The negative returns as well as fiscal year end redemptions hit the income and liquid fund categories hard, with Rs99,370 crore moving out of these two categories. This contributed to a 18% decline in the industry’s assets to Rs4.2 trillion over the month.
feedback@livemint.com
Graphics by Paras Jain / Mint
Comment E-mail Print Share
First Published: Thu, Apr 16 2009. 10 47 PM IST