INSUBCONTINENT EXCLUSIVE:
after its last scheduled tender for the fiscal year on Friday (February 25), two people familiar with the matter said, to take advantage of
surged and as the state had achieved a comfortable cash balance for the fiscal year that ends March 31, 2022.But in a surprise move for
its planned borrowing if market conditions were appropriate."(We) will not commit if this would be our last borrowing for the year
We are watching the yields and will take a call accordingly," a senior official directly involved in the matter told Reuters.A second source
said it would be recommended for the government to borrow now to take advantage of the relatively lower yields.The 10-year benchmark yield
the official reason for the cancelled auctions as a comfortable cash balance, sources had told Reuters at the time officials were concerned
about the sharp market reaction after the announced borrowing plan.However, traders warn new auctions could drive yields higher again."The
belief is that we are done with the borrowing for this year
If the government decides to borrow towards the cancelled auctions later, it will lead to a lot of pressure on bonds, especially in the
current geopolitical backdrop," a senior trader at a foreign bank said."If we have more auctions this year, yields will likely climb back to
