The Indian government plans to raise 7.86 trillion rupees — roughly $82 billion — through bond sales between October and March, slightly less than previously planned, as it tries to contain rising yields and steady the market.
The move brings gross borrowing for the full financial year to 15.995 trillion rupees, down from 16.09 trillion announced for the first half of the fiscal year and well below the 17.20 trillion flagged in the budget. New Delhi has already raised 8.135 trillion rupees in the April–September period, after borrowing 65 billion rupees less than planned at an auction two weeks ago.
Alongside the smaller headline number, the government is changing the mix. Based on consultation with the central bank and market feedback, it will sell securities maturing in 3, 5, 7, 15, 30, 40 and 50 years, with the 10-year still the largest share. But the share of longer-duration paper is being increased: the five-year and 10-year segments will now make up 12.1% and 26.3% of borrowings, down from 15.4% and 29% in the April–September period, while the 15-year and 30-year segments together rise to 26.8% of supply from 21.8%.
Traders said the rebalancing could bring some relief to the liquid part of the curve after a heavy selloff in recent sessions. "Though the borrowing is not a game-changer, the composition will lead to some relief rally in the liquid five-year and 10-year segments, where any buying is much needed," said VRC Reddy, treasury head at Karur Vysya Bank.
The government will also sell 150 billion rupees of green bonds in the second half, taking the year's total to 300 billion — the highest since New Delhi began issuing green notes in fiscal 2023 — after strong demand earlier in the year. Weekly treasury bill sales will dip slightly to 230 billion rupees between October and December, from 240 billion in the first two quarters.
India's 10-year benchmark bond yield closed at 7.1194% on Friday, its sixth consecutive weekly increase, underscoring why the government is keen to keep supply in check.
Sources:
- Reuters: India lowers FY27 gross borrowing, to sell debt worth 7.86 trillion rupees in Oct-Mar — https://www.reuters.com/business/in...worth-786-trillion-rupees-oct-mar-2026-09-25/
The move brings gross borrowing for the full financial year to 15.995 trillion rupees, down from 16.09 trillion announced for the first half of the fiscal year and well below the 17.20 trillion flagged in the budget. New Delhi has already raised 8.135 trillion rupees in the April–September period, after borrowing 65 billion rupees less than planned at an auction two weeks ago.
Alongside the smaller headline number, the government is changing the mix. Based on consultation with the central bank and market feedback, it will sell securities maturing in 3, 5, 7, 15, 30, 40 and 50 years, with the 10-year still the largest share. But the share of longer-duration paper is being increased: the five-year and 10-year segments will now make up 12.1% and 26.3% of borrowings, down from 15.4% and 29% in the April–September period, while the 15-year and 30-year segments together rise to 26.8% of supply from 21.8%.
Traders said the rebalancing could bring some relief to the liquid part of the curve after a heavy selloff in recent sessions. "Though the borrowing is not a game-changer, the composition will lead to some relief rally in the liquid five-year and 10-year segments, where any buying is much needed," said VRC Reddy, treasury head at Karur Vysya Bank.
The government will also sell 150 billion rupees of green bonds in the second half, taking the year's total to 300 billion — the highest since New Delhi began issuing green notes in fiscal 2023 — after strong demand earlier in the year. Weekly treasury bill sales will dip slightly to 230 billion rupees between October and December, from 240 billion in the first two quarters.
India's 10-year benchmark bond yield closed at 7.1194% on Friday, its sixth consecutive weekly increase, underscoring why the government is keen to keep supply in check.
Sources:
- Reuters: India lowers FY27 gross borrowing, to sell debt worth 7.86 trillion rupees in Oct-Mar — https://www.reuters.com/business/in...worth-786-trillion-rupees-oct-mar-2026-09-25/
