As reported by Economic times on 28th March 2024, Centre will borrow ₹7.5 lakh crore in H1FY25, eyes ₹12,000 crore via green bonds. The sum is lower than the usual borrowing of about 57-60% of the total for a fiscal year in its first half.
A lower borrowing target for the first half would have a benign impact on bond yields. So this is a good news for all Debt funds and Asset Allocation funds, which has bonds in its portfolio.
In another good news from Debt Market, JPMorgan has announced that it will include Indian government bonds in its widely tracked emerging market debt index, starting June 2024.
In the interim Budget last month, the government had reduced the FY25 gross market borrowing target to Rs 14.13 lakh crore from Rs 15.43 lakh crore in FY24, as it went on a fiscal consolidation drive.
Market is showing its happiness in the matter , by way of broad rally in last 5 days :
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – By Warren Buffett
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