Bond market rallies after FM proposal to float govt securities overseas

Sovereign bonds in India rallied after Finance Minister Nirmala Sitharaman said the government will borrow overseas to finance the budget deficit, a move that will ease pressure on local markets saturated with supply.
 
The administration also set the budget deficit target for the fiscal year at 3.3% of gross domestic product, lower than the 3.4% estimated in February’s interim plan. Yields on the benchmark 10-year debt dropped as much as 19 basis points, the most in six months, to its lowest in almost two years.
 
Prime Minister Narendra Modi faces shrinking options to raise funds as a slowing