The Budget 2026 maintained a trend of steadily reducing the fiscal deficit and indicated that the figure for FY26 was 4.4 percent. This is expected to decline further to 4.3 percent in FY27. As the transition to a debt-to-GDP regime begins, this figure for the current fiscal stands at 56.1 percent and is expected to […]
A large number of factors, including the possible budgetary impact of the implementation of the 8e Recommendations from the Pay Commission, stricter investment guidelines and the RBI’s higher inflation projection for the first quarter of FY27 have dampened banks’ appetite for government bonds (G-Secs). This has led to G-Sec yields rising despite the repo rate […]
According to a recent report by the State Bank of India (SBI), the Reserve Bank of India’s (RBI) share of outstanding government bonds (G-secs) has increased noticeably over the past year. The report said that the RBI’s stake increased to 14.2 percent in June 2025, compared to 11.9 percent in June 2024 and 10.6 percent […]
Prospects of 10-year G-Sec yields falling further to 6.30-6.35 percent exist if both rate deals and repo rate cuts materialize | Photo credit: Yields on government bonds (G-Secs) could ease in the coming weeks in the wake of record low retail inflation, opening the possibility of a cut in repo rates and the likelihood of […]
Government bonds written in a note. Trade concept. | Photocredit: Designer491 The first cheers about the larger than expected 50 basic reduction reduction made way for disappointment on the market for government effects (G-SECs) on Friday, because the tariff panel of the RBI announced a change in the monetary policy position from “accommodation” to “neutral”. […]