Key insights
- India's reduced borrowing program and shift away from ultra-long dated securities may limit further increases in sovereign bond yields. While primarily impacting the Indian market, geopolitical tensions (US-Iran) are mentioned as a factor influencing yields, creating a slight negative influence on US equities due to broader risk-off sentiment.
Investing.com -- India will borrow 8.2 trillion rupees ($86.5 billion) in the first half of the financial year beginning April 1, representing approximately half of the amount scheduled for the full 12-month period, the government said Friday.
The administration reduced its gross borrowing program to 16.09 trillion rupees from 17.2 trillion rupees announced in the budget on February 1. The government also lowered the amount it intends to borrow via ultra-long dated securities, a move that may cap a further increase in sovereign bond yields, which have climbed to almost a two-year high since the US-Iran war broke out a month ago.
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