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Here's why govt's plan to float sovereign issue has divided the bond market

The issue of raising bonds overseas has come up several times in discussions

Markets
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Foreign borrowing could be risky if rupee depreciates

Anup Roy Mumbai
Bond market participants have mixed feelings about the government’s plans to float sovereign bonds. On the one hand, participants say it will lessen the load from the domestic market; on the other hand, they say it might bring undue volatility in the domestic market should the overseas investors decide to short the bonds reflecting a global risk-off sentiment. In the domestic market, such things are easily controlled by the Reserve Bank of India (RBI), but it has no say in foreign jurisdiction.

The offshore non-deliverable forwards market (NDF), which often sets the sentiment for domestic currency markets, is an example where

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