Expect 60% of gross borrowings done in 1st half: HDFC Bank

Bond markets are in a spot of bother over the last 48 hours. We have seen yields rise all the way from 8.3839 to now at 8.49. The market worries about the government borrowing which will start from 1st April.

Ashish Parthasarthy of HDFC Bank expects 60 % of the gross borrowings done in the first half. If it goes beyond that then the market will be in shock. He feels that there will be a 10 to 15 basis points cut in April. His personal view is that the bond yields should range from 8.40 to 8.70 in the April-June period. Below is an edited transcript of his interview to CNBC-TV18. Watch the accompanying video for more. Q: We have already seen this huge shorting of bonds, a fairly big movement from 8.37 to 8.50 nearly. What kind of a borrowing programme will take yields higher you think?
A: I think the borrowing programme itself is likely to take yields higher. So, it doesn