Bonds up as govt sticks to borrowing programme

Written by Reuters | Mumbai | Updated: Sep 25 2013, 08:51am hrs
The government bonds rose on Tuesday after the government said it will stick to its fiscal second-half borrowing, though they gave up most of the gains after a move to keep any diesel price hike at bay was seen as hurting reforms.

The government will borrow R2.35 lakh crore in October-March as part of its overall R5.79-lakh crore borrowing programme for 2013-14, it said after trading hours on Monday.

The benchmark 10-year bond yield ended 1 basis points (bps) lower at 8.84 percent. Bonds gave up most gains after oil minister Veerappa Moily said the government has no plans to raise diesel and other subsidised fuel prices.