Bonds rally as govt keeps borrowing programme limited to Rs 7.1-trn

The government borrows from the market for the buyback, but it is not doing so for the next year

Bond yields fell 10 basis points as a reaction to measures taken by the government for opening up domestic bond markets to overseas investors, including the idea of inclusion of Indian bonds in global bond indices.
 
The yields on the 10-year bond fell to 6.50 per cent, from 6.60 per cent on Friday, as the markets were happy there won’t be any extra borrowing in this fiscal year, as the balance would be taken from small savings.
 
The government has kept its borrowing programme limited to Rs 7.1 trillion in the current fiscal year, and Rs 8.1 trillion