Yields drop a bit amid doubts over future borrowing
The markets may not be convinced about the Centre’s ability to keep the borrowing plan unchanged
The 10-year government bond yield on Thursday closed lower by 2 basis points from the previous close of 6.01%, a day after the Union government announced its half-yearly borrowing numbers for 2020-21. This indicates that the slight softening of the bond yields was in reaction to the Centre sticking to the borrowing programme. However, the market still thinks that the government could go for additional borrowing in the fourth quarter.
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