bond yields fall today: Bond yields slump as government cuts market borrowing plan for FY25

“Now that the private investments are happening at scale, the lower borrowings by the central government will facilitate larger availability of credit for the private sector,” the finance minister said in her Budget speech. Following this announcement, yields on the benchmark 10-year bond dropped by as much as 9 basis points to 7.05%.Also Read | Energy stocks rally up to 7% on Sitharaman’s rooftop solar scheme announcement “Lesser borrowing by the government will be beneficial for the private sector and households as it will put more money on the table for them,” said Apurva Sheth, head of market perspectives & research, Samco Securities.

The lower borrowing number could be against the backdrop of higher foreign inflows expected in the bond market this year, following the inclusion in two major global bond indices – JPMorgan and Bloomberg.

Also Read | Railway stocks trade off highs; was FY25 Interim Budget a disappointment?

JPMorgan will include India bonds to its Global Bond Index – Emerging Markets starting June this year. The government expects inflows of over $23 billion as a result of this inclusion.

Meanwhile, Bloomberg plans to include India bonds in the Bloomberg EM Local Currency Indices in a phased manner starting in September.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)