Budget 2021 has heated up the bond market. This is how RBI can cool it down

There was a sharp rise in yields on government bonds after Finance Minister Nirmala Sitharaman announced high borrowing numbers in her Budget for 2021-22. Now, the Reserve Bank of India (RBI) may be prompted to unveil measures to cool the yields down in order to keep the cost of funds in check. The bond market got a negative surprise on Monday when the government projected its gross borrowing numbers for next financial year at Rs 12.05 trillion, much higher than the expected Rs 10.5 trillion. To make the matter worse, the government said it would borrow an additional Rs 80,000 crore in t.....

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