Bonds at three-month high on report govt may borrow less

Government bonds rose to new three-month highs on Tuesday on a report quoting an unnamed finance ministry official as saying that the fiscal year borrowing may be less than earlier budgeted if fiscal deficit is kept in check.

Reuters| Last Updated: Jan 21, 2014, 09:57 AM IST

Mumbai: Government bonds rose to new three-month highs on Tuesday on a report quoting an unnamed finance ministry official as saying that the fiscal year borrowing may be less than earlier budgeted if fiscal deficit is kept in check.

A leading English dailty reported that a large chunk of the remaining 400 billion rupees of bond sale may be cancelled due to a pickup in small savings.

The benchmark 10-year bond yield fell 5 bps to 8.47 percent, its lowest since October 11.