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Policy● Neutral for Indian equities
Govt Cuts FY27 Market Borrowing Target, Eyes Raising Rs 7.86 Lakh Crore In Second Half
The brief
- The government plans to raise ₹7.86 lakh crore in the second half of FY27
- Five-year bonds make up 12.1% of H2 borrowing; three-year bonds, 6.9%
- The borrowing plan may affect bond yields, which influence funding costs for Indian banks
- Bond ructions point to new danger zone in markets
- Why investors aren’t buying yet another attempt by the Treasury Department to calm the rattled bond market
- SIDBI withdraws ₹6,000 crore three-year bond issue as yields harden
- Auction of 91-Day, 182-Day and 364-Day Treasury Bills
- Auction of State Government Securities
FY27 government market borrowing
The Centre plans ₹7.86 lakh crore in bond sales in H2 FY27 and cut its full-year gross borrowing estimate by ₹1.2 lakh crore to ₹15.99 lakh crore, citing stronger tax and non-tax receipts. The plan includes ₹15,000 crore in green bonds.
Friday, 25 September
- Govt Cuts FY27 Market Borrowing Target, Eyes Raising Rs 7.86 Lakh Crore In Second Half