As per the market borrowing calendar, the central government will borrow Rs 5.76 tn and Rs 4.91 tn on gross and net basis respectively in H2 FY23.

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Sep 12, 2022

Quick take on H2 FY23 g-sec borrowing calendar: No surprises

With borrowing calendar offering no surprises, market will now turn to upcoming RBI policy on Sep 30th for cues. We expect MPC to hike by 50 bps (followed by another 35 bps in Dec), a decision that’s largely priced in. As such, we continue to see 10Y g-sec yield in the 7.2-7.6% range in the remainder of FY23. While pressure on INR could provide an upside risk to our rate call, the same could get offset to some extent by the likelihood of India’s inclusion in global bond indices in Apr-23.