Bond yield rises to one-year high on borrowing plan

THE GOVERNMENT BOND yields surged to one-year high on Monday as the market reacted negatively to the higher-than-expected gross borrowing by the government for 2026-27.

- CHRISTINA TITUS

The yield on the 10-year benchmark bond ended at 6.77%, up 7 basis points (bps) from the previous close.

The Budget proposes the government’s gross borrowing through dated securities at ₹17.2 lakh crore in FY27, which is a 16% jump from the last year. The net borrowing from dated securities is estimated at ₹11.7 lakh crore.

“The market is surprised by the higher-than-expected borrowing numbers. It anticipated around ₹16-16.5 lakh crore, but actual figures exceed that, potentially pushing the yields. Now, the yields are trending towards 6.80% level,” said a dealer at a state-owned bank.