At present, the spread between the 10-year benchmark bond yield and similar tenor state debt yield is around 31 to 35 basis points. — Reuters
MUMBAI: Demand for Indian federal and state bonds is expected to exceed supply for the next few years, driving down the cost of funds for the current, and next financial year, a top analyst at brokerage Axis Capital says.
Though combined borrowings of central and state governments could fall to 18 trillion rupees (US$215.49bil) in the financial year ending March 2025, demand will be comfortably above that level even if foreign investors do not buy more Indian debt, Neelkanth Mishra, head of research at Axis Capital said in a note on Monday.
