INSUBCONTINENT EXCLUSIVE:
India is considering a proposal to reduce treasury-bill sales next quarter as short-term borrowing costs surge, people with knowledge of
the matter said.
The government may avoid incremental borrowing via the bills and only borrow to meet its previous repayment needs in the
Another option is to cancel sales if the yields demanded by investors are too high, they said.
Borrowing costs at treasury-bill auctions
have surged to the highest in more than three years amid tight banking liquidity and the recent spate of front-loaded rate hikes by the
It is up 264 basis points this fiscal year.
The government is comfortable with the yield being within 7.5% for the benchmark 10-year bond,
The government is currently borrowing a gross 220 billion rupees each week via t-bills in the current quarter.
