Govt unlikely to cancel bond auctions despite spike in yields: Source

Economic Affairs Secretary Subhash Chandra Garg will review the bond market's recent volatility later on Friday

Government is unlikely to cancel bond auctions despite a spike in bond yields as it does not want to trigger panic in financial markets, a senior finance ministry official said on Friday.

The official said the Reserve Bank of India will engage with primary dealers and tweak the bond issuance basket to ensure auctions go smoothly.

The RBI was not immediately available for comment.

"We have decided that RBI will keep taking a sense of the market at every auction. RBI will also talk to the primary dealers to tweak the (issuance) basket," the official said, adding, "We are mature borrowers and we