In the interim Budget for FY25, the government has pegged the gross and net market borrowing at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. Most experts had pegged the gross market borrowing to be a little over Rs 15 lakh crore. The planned borrowing for FY25 is less than that in FY24. For FY24, the government had pegged gross market borrowing at Rs 15.43 lakh crore.
Government bond yields slid to their lowest levels since June, bringing down the cost of borrowing across the economy, as the Centre took the unusual step of dipping into a tax fund kitty to bring down its gross debt issuances for FY25, pleasantly surprising the market with lower supply.
Weakening data and dovish comments from some Fed officials have sent yields tumbling, with 10-year yields dropping from 16-year highs reached in October. Yields extended their drop on Tuesday after a report showed that job openings fell sharply in October.
"The sudden drop in Treasury yields in November has led to similar movement in Indian bond yields, though the magnitude is not similar," said VRC Reddy, treasury head at Karur Vysya Bank.