India Plans Big Bond Sale in First Half of Fiscal Year

India’s Central Government to Raise ₹8.20 Trillion in Bonds (April–September)

• Borrowing Target: Half of the annual goal, raising ₹8.20 trillion (≈54% of the full‑year target).
• Shift in Maturity Mix: Ultra‑long bonds (30–50 years) cut from 35% to 24.9% last year’s first half.
• Schedule Confirmation: Traders expected a 53–56% borrowing range; the new plan confirms ~54%.
• Yearly Plan: Record ₹17.20 trillion announced in February; recent auctions reduced it to ₹16.09 trillion.

Market Impact

• Indian bonds, stocks, and the rupee fell amid Iran‑related tensions.
• 10‑year bond yield spiked to a 20‑month high of 6.95%.
• Rupee slipped past ₹94 per U.S. dollar for the first time.

Debt Distribution Strategy

• Maturities spread across 3, 5, 7, 10, 15, 30, 40, and 50 years to avoid front‑loading.
• Green Bonds: ₹150 billion issued.
• Treasury Bills (April–June): ₹2.88 trillion.

Economic Outlook

• Economists believe the schedule may lower yields once regional tensions ease.
• Recommendation to postpone some borrowing until after conflict resolution.