Plan in line with bond mkt expectations

The central government's plan to borrow ₹6.61 trillion in the second half of the current financial year (H2FY25) through the issuance of dated securities is in line with market expectations, bond market participants said, adding that the borrowing calendar is consistent with the budgeted amount, featuring only minor adjustments in the distribution across various tenures.

- ANJALI KU MARI

Despite subdued demand in the first half, the government will borrow ₹20,000 crore through sovereign green bonds (SGrBs).

“Out of gross market borrowing of ₹14.01 trillion budgeted for 2024-25, ₹6.61 trillion (47.2 per cent) is planned to be borrowed in H2 through issuance of dated securities, including ₹20,000 crore of Sovereign Green Bonds (SGrBs),” the finance ministry said in a statement on Thursday.

As the bond market was expecting an adjustment across tenure, it led to the fall in yields on the benchmark bond to more than a two-and-a-half-year low on Thursday. The benchmark yield settled at 6.72 per cent, lowest since February 21, 2022.