Budget 2020: Bonds poised to rally as government skips further borrowing plans
Updated : February 02, 2020 07:34 PM IST
Bond market players said the revised fiscal deficit target of 3.8% for the current financial year and 3.5% for the next were largely in line with expectations.
With the government expected to miss its fiscal deficit target, investors had assumed it would borrow additional funds from the market over the next two months to fund the deficit, but the government has made adjustments to avoid this.
Traders predicted a 5-10 basis-point rally in bond yields on Monday, but said there would be strong resistance for the benchmark 10-year bond around 6.5% levels.