Why have the bond market yields not spurted sharply despite sharp rise in fiscal deficit?

Why did the bond markets react harshly when the government announced it would double its market borrowing size? While the benchmark 10-year bond yield spiked briefly, yields have eased despite the finance minister announcing details of the stimulus package with the promise of more. There is a reason behind this behaviour of bond yields. The stimulus package relies heavily on bank lending and little on direct outgo from the government. Analysts estimate that the hit on government finances is just a fraction of the total Rs.20 trillion package. Fiscal implications as of now are to the tune of Rs.10.8 trillion and the effective fiscal cost is just about Rs.1.70 trillion. RBI has also been lapping up bonds in the market. For example, against a promised Rs.25,000 crore, the RBI ended up buying close to Rs.130,000 crore since mid-March. In short, the RBI has absorbed 14% of the revised borrowing for the first half. RBI is also open to direct monetization.