Mumbai/New Delhi: India’s finance ministry has called for a meeting of primary dealers in New Delhi on Wednesday to discuss its near record bond-sale program for the new fiscal year, according to people with knowledge of the matter.
The ministry wants to seek the views of market participants about how it can conduct the Rs6.06 trillion ($92.9 billion) program smoothly, and talks may include what maturities would be better received, said two primary dealers. A government official said the meeting would be used to gauge the mood of the market and the appetite for bonds. All the people asked not to be named as they aren’t authorized to speak publicly.
Finance ministry spokesman D.S. Malik didn’t immediately respond to a request for comments.
The central government cut back on the size of several bond sales and cancelled others in December and January as a rout in debt markets deepened. State-run banks, the biggest holders of the securities, have stayed away after incurring losses amid the selloff.
India’s bonds have slumped for seven straight months, the longest stretch in two decades. A rising debt supply, climbing global yields, faster inflation and the prospect of higher interest rates have all helped sour sentiment. Bloomberg