Bond Market Update: 10-Year Yield Falls Four Basis Points to 6.69 percent. Indian government bonds may drop on a news report that the government may seek about Rs 30,000 crore as interim divided towards the end of the financial year to meet its fiscal deficit target of 3.3 percent of GDP.
Traders will also await the October – March borrowing calendar on Monday to see whether authorities stick to their borrowing target and announce an overseas bond sale.
The 10-year bond yield rose two basis points to 6.74 percent on Friday, after having surged to 6.77 percent intraday as the central bank’s liquidity report on managing funds in the banking system through long-term repo auctions triggered concerns the authority may go slow on open-market bond purchases.
