The quantum is higher than almost every market estimate. Traders had expected a borrowing of around 3.50 trillion rupees in the last quarter of the fiscal year, ending March 31.Market participants will keep an eye on demand from state-run banks as well as further foreign inflows, which could keep a check on any major rise in yields.
Market participants also stayed away, awaiting debt supply on Friday. New Delhi aims to raise 280 billion Indian rupees ($3.39 billion) through the sale of bonds, which includes 120 billion rupees of the benchmark paper.