Bond yields surge on buzz that PMO is opposed to sovereign bonds

Bond yields spiked up to 10 basis points (bps) on Thursday on news that the government could be dropping the idea of a sovereign bond issued in foreign currency. Subhash Chandra Garg’s transfer to the power ministry, from being economic affairs secretary, also fuelled the speculation, even as there was no official announcement on this.
 
Now the plan could be to raise rupee-denominated bonds. According to a report by news agency Cogencis, the Prime Minister’s Office (PMO) has asked the finance ministry to issue rupee-denominated bonds, instead of foreign currency bonds. The agency quoted an anonymous source saying the