RBI announces borrowing plan; bond yield unlikely to move

Moneycontrol Bureau

The Reserve Bank of India (RBI) on Tuesday announced the detailed government borrowing plan through marketable dated securities (or government bonds in simple term) for the first half of the fiscal year 2012-13. In between April and September, 2012, the government will sell bonds worth Rs 3.70 lakh crore (gross) out of its budgeted target of Rs 5.69 lakh for the full year.

This will be equivalent to a net borrowing of Rs 2.85 lakh crore out of Rs 4.70 lakh crore slated for FY13. Net borrowing is calculated after deducting redemptions and interest payments of the earlier bonds. In his Budget speech on March 16, the Finance Minister had hinted about raising 65% of the gross borrowing for FY13 in the first half itself.