Thursday, 18 January 2018

Will the borrowing cut be past or prologue for the bond market?


Past is prelude, so said Shakespeare. For the Chain market, whether this is true will be only announce on 1 February. 
Bond yields, that have been rising constantly since June last year, discarded a enormous 16 basis points on Wednesday after the government said it would obtain Rs30,000 crore less than previously stated. The lower-than-feared financing has fired up hopes that the center is serious about keeping its fiscal deficit under check in a year when India assembles a rating upgrade.
For now, it has also made traders comfortably forget that the government, in fact, is indeed renting Rs20,000 crore more than it formerly approximated. 

The trend in tax dividend doesn’t offer any hope of devaluation in the deficit in the current year. Goods and services tax (GST) collections have decayed for the second short month.

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