India's massive borrowing puts RBI under pressure to keep yields in check

India will borrow a gross Rs 12 trillion ($164 billion) via bonds in the fiscal year beginning April, Finance Minister Nirmala Sitharaman said on Monday

India’s central bank is under pressure to step in to keep yields in check after the government surprised bond markets with a bigger-than-expected borrowing plan.
 

That puts the burden on Governor Shaktikanta Das to calm the bond traders when he meets to decide policy on Friday. He’s already had to assuage them that a recent measure to mop up excess liquidity isn’t a step toward changing the RBI’s accommodative policy and the central bank has rejected bids at two auctions of benchmark debt after investors sought higher yields.

India will borrow a gross Rs 12 trillion ($164 billion) via