The market was a bit morose from the word go. Right from the early morning trades, GILTs were at fresh three-week lows in terms of their prices and yields had risen to about 8.54 or 8.55 levels. The bond prices fell to three-week lows on worries over the new borrowing calendar that the government may announce on Monday, reports CNBC-TV18's Latha Venkatesh.
The auction went as per expected. Most of the yields come in a little over a higher than what the street expected, so that was not disappointing. The disappointment or fear is on what will come on Monday and whether it will come on Monday because there were noises that perhaps the new borrowing numbers may not even come on Monday.
The street has been guessing that perhaps Rs 40,000 crore will be borrowed more through government bonds, but there is a little more trepidation now that the fiscal gap numbers are coming in for April-November. The numbers show that from April to November the total fiscal gap is already at 85% of what it should have been for the full year.
In eight month that is almost 66% of the time, about 86% of the year
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