Government bond yields fell 25 bps on Tuesday after the centre announced lower-than-anticipated government borrowing programme in the first half of 2018-19. The bond market was mired in the longest slump since 1998, one that has stretched for more than six months, according to Bloomberg. Bond yields dropped 25 basis points, the biggest single-day fall that even the deluge of demonetization in 2016 couldn’t take credit for. It will issue floating rate bonds, and borrow more through short-term bonds, thereby making it easier for investors to manage treasury. Since the first two quarters do not see a rush for private credit offtake, there will be enough appetite from banks.

Source: Mint March 28, 2018 02:48 UTC