The federal government is confident that it can acquire funds for its massive 2021-22 borrowing program at below 6 per cent, as the reserve bank has given guarantees that it will supply liquidity, two senior officials told Reuters.Holding policy interest rates unchanged at record lows on Friday, Reserve Bank of India Guv Shaktikanta Das ensured financiers that its position on liquidity stayed accommodative and that the government's Rs 12.06 lakh crore borrowing program for the beginning April would be managed in a smooth and orderly way.

RBI has actually guaranteed us that the borrowing for 2021/22, yields will be comfy and we expect it to not top 5.9 percent for the fiscal, one of the two sources said.He added that the government's long-term typical borrowing cost is expected to be between 5.8-5.9 percent in the starting April.Despite the pledge from the RBI, bond yields had risen on Friday as financiers had actually been expecting a more clarity in the type of a bond purchase calendar.

Yields on the majority of bonds nevertheless pulled back in the future Friday, following the financial obligation auction results.

The RBI has actually shown that it will not blink as appeared in the auction results, a second source who asked not to be named as he was not cleared to talk about the matter publicly said.The reserve bank offered just Rs 9,000 crore of bonds versus Rs 31,000 crore it had actually set out to sell on Friday, with underwriters to the auction purchasing Rs 8,810 crore worth of the paper, after the market demanded greater yields.

The RBI has actually done whatever the marketplace has needed and wanted all of in 2015, so they require to trust the central bank.

There is no concern of an open market operations (OMO) calendar, the source added.RBI's OMOs are dependant on its dollar buying interventions in the forex market, as it would immediately release rupee liquidity and not a tool to tame bond yields, hence providing a calendar is not practical, the source explained.The RBI did not immediately react to queries while the financing ministry decreased to comment.