India’s announcement of his plans to reduce GST, which would have a direct impact on income and could lead to extra loans, further filled in sentiment further | Photocredit: Francis Mascarenhas
The Central Bank of India will meet the participants in the bond market later this week, including banks and primary dealers, for their suggestions about government loans in the second half of the fiscal year, said four treasury sources at the level of the business on Monday.
The meeting takes place on Wednesday and Thursday and comes at a time when banks stare at huge treasury losses of the recent peak in bond returns.
“We would certainly discuss current market conditions and what possible solutions that the central bank can give, apart from giving feedback for borrowing October-March,” said one of the sources.
The reserve Bank of India did not respond to an e -mail to ask for comments. The Treasury sources asked for anonymity because they are not authorized to speak with the media.
India usually announces its loan schedule for the tax second half in the last week of September.
It is planned to sell bonds worth £ 8 trillion in April-September, and is planned to borrow £ 6.8 trillion in October-March, according to the annual schedule.
An important suggestion in the categories of investors is to reduce the range of ultra-long bonds-de category 30-50 years.
The proceeds on these articles have risen 30 basic points in August and perform under the rise of 19 BPS in the return of the 10-year-old benchmark bonds. The jump came after the RBI had kept rates last month and predicted inflation above 4% in 2026.
The announcement of India of his plans to reduce tax rates for goods and services that would have a direct impact on income and can lead to extra loans, moistened further.
Investors had already called for a reduction in the supply of these banknotes, which are a third of New Delhi loan needs, in the first quarter, amidst lukewarm demand from long -term investors.
A few large banks met RBI officials last week to emphasize their mark-to-market losses, according to the sources.
“Discussions were also aimed at the monetary policy of the Central Bank and the sudden announcement by the government of reducing tax rates, both of which have broken the confidence of investors,” said one of the sources.
Traders ask to buy RBI intervention in the midst of a sharp decrease in institutional, because higher yields are in danger of blocking the monetary transfer.
Published on September 1, 2025
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