InvestorQ : Why did bond yields shoot up after the Budget announcement?
vaishnavi mhatre made post

Why did bond yields shoot up after the Budget announcement?

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vidhya Laxmi answered.
12 months ago
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The benchmark 10 year yields in the Indian bond markets shot up on the day of budget from 6.66% to 6.89%. This was triggered by a sharp spike in government borrowings for FY23 From Rs.12 trillion to Rs.14.9 trillion. That is a huge leap and will put pressure on yields. However, bulk of the fiscal deficit creation is passed to states, which is why yields tapered later.

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