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GST compensation: Impact of Centre’s borrowings on bond markets

Updated : October 16, 2020 03:52 PM IST

Bond yields have been stable so far despite the government announcing it will borrow an additional Rs 1.1 lakh crore to pay states their share of the Goods and Services Tax (GST).

Bond markets are factoring in a very low chance of extra borrowing by the government in February and March.

CNBC-TV18’s Latha Venkatesh explains the impact of GST borrowings on the bond markets.

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