Bond bulls torn between greed & fear on chances of stimulus after GDP shock

Fears of stimulus adding to already record borrowings led to benchmark sovereign notes capping their worst performance in 16 months in August

As bond traders around the world rejoice in this year's dizzying debt rally, the mood is more tempered in India.

Yields have barely budged despite the government's recent measures to lift Asia's third-biggest economy. Even prediction of deeper interest-rate cuts by Goldman Sachs Group Inc after Friday's data showed growth hitting a six-year low didn't push up bond prices a whole lot Tuesday.

The reason: traders are worried the weak GDP print may force the government to deliver a big revival package, which it has so far resisted. Fears of stimulus adding to already record borrowings led to benchmark sovereign notes capping