Statsguru: Bond market pressure is getting reflected in the stock market

Bond markets are showing signs of nervousness, and yields on the 10-year government bonds are on the rise

THE ESSENCE OF THE National Statistical Office’s latest data on India’s economic growth was kind of expected, especially from the point of view of financial markets. They, as participants say, had already factored in a recovery of this kind. Gross value added went up by 1 per cent in the third quarter of this financial year, turning positive after two quarters of contraction. Inflation, too, has come under control as growth finds its way, chart 1 shows.

But since the Union Budget announ­ced additional borrowings of Rs 80,000 crore, bond markets are showing signs of nervousness, and yields on the