Rate cuts fail to cheer bond market worried about Modi govt's borrowing

All eyes are now on the government's financing plans for the fiscal second half due today, with traders concerned that the authorities could increase bond sales beyond the Rs 2.68 trillion set earlier

September is shaping up to be a brutal month for Indian bonds, and traders are hoping the government’s borrowing plans this week will offer some relief.

Benchmark 10-year rupee yields have climbed almost 20 basis points since end-August, driven by fears that a $20 billion tax cut could boost an already bloated bond supply. Even an expected interest-rate cut by the central bank on Friday -- the fifth for the year -- has done little to aid sentiment.

All eyes are now on the government’s financing plans for the fiscal second half due Monday, with traders concerned that the authorities