India to cut long-tenor bond issuance on waning demand

The administration retained bond-sale target at 6.77 trillion rupees ($76.3 billion) for 2nd half of FY26

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India will scale back the issuance of longermaturity bonds over the next six months, as demand from insurance and pension funds shows signs of easing.

‘The administration retained the bond-sale target at 6.77 trillion rupees ($76.3 billion) for the second half of the fiscal year ending March 2026, the government said in a statement after market hours on Friday. Of that, 29.5 per cent will be in the 30to 50-year maturity bucket, down from 35 per cent in the first half.

The government cut the issuance of long-dated bonds based on market feedback, while increasing sales in the three-year tenor, Economic Affairs Secretary Anuradha Thakur told reporters.

‘The administration is committed to meeting its fiscal deficit goal, and the borrowing calendar demonstrates that, she said.