Bond market doesn't expect surprises

Ballooning of states' debt paper a growing concern, including effect on corporate sector

The central government is likely to keep the gross borrowing number on the higher side, considering the heavy redemption pressure in the next financial year. However, net borrowing could be at par with that in this financial year, say economists and bond dealers.

In 2017-18, about Rs 2.28 lakh crore of bonds are set to mature. The government borrowing programme will have to account for it. To avoid paying the entire amount at one go, the government enters into arrangements with the Reserve Bank of India (RBI) or large institutions like insurance companies to swap some of the maturing bonds