India’s bond market reacted sharply to the finance minister’s announcement of higher-than-expected fiscal deficit for the coming year and the corresponding borrowing burden on the market saw 10-year bond yields jump 11 basis points to close at 7.38 per cent.
Net borrowing, after adjusting for repayments, is seen at Rs 4.48 lakh crore in FY20 almost unchanged from Rs 4.47 lakh crore as per the revised estimate for FY19.