Mumbai: JPMorgan expects India`s gross borrowing for 2014/15 to be in a range of 6.1 trillion rupees to 6.4 trillion rupees.
The investment bank adds net issuance should be 4.7 trillion rupees, based on the government`s forecast of a 4.2 percent fiscal deficit for FY15 and 88 percent financing via government bonds.
J.P.Morgan adds RBI has also conducted a debt swap for 120 billion rupees out of 1.7 trillion rupees redemptions for fiscal 2015.
These factors work out to a gross borrowing requirement of 6.25 trillion rupees for fiscal 2015.
J.P.Morgan continues to remain tactically long on 5-year bonds as technicals will remain favourable over the next couple of months.
Finance Minister P. Chidambaram will present an interim budget on Monday, the last one before general elections due by May.
First Published: Friday, February 14, 2014, 12:49