Finance minister Arun Jaitley sparks confusion on fiscal deficit target

Written by Reuters | Mumbai | Updated: Jul 10 2014, 18:49pm hrs
India's benchmark 10-year bonds gave up some of their gains on Thursday over confusion about the government's fiscal deficit target for the current fiscal year.

Finance minister Arun Jaitley had earlier announced the country would stick to the previous government's fiscal deficit target of 4.1 percent of gross domestic product for the year ending in March 2015, but later in the speech said the target stood at 4.5 percent in a passing reference.

Traders said the contradiction had created confusion, although they said Jaitley may have misspoken.

The benchmark 10-year bond yield was trading at 8.67 basis points, off a session low of 8.64 percent but still down from its 8.73 percent close on Wednesday.