The Reserve Bank of India is expected to tilt the government’s borrowing programme toward shorter-tenure securities in the second half of FY27, as surplus banking system liquidity remains elevated and demand for near-dated paper stays firm. Traders expect short-term bonds to make up about 35% of borrowing, up from 31% in the first half, while strong appetite for 5-7 year securities could influence the maturity mix.
"RBI May Skew FY27 Borrowing Toward Shorter Bonds as Liquidity Stays Flush"
The Reserve Bank of India is expected to tilt the government’s borrowing programme toward shorter-tenure securities in the second half of FY27, as surplus banking system liquidity remains elevated and demand for near-dated paper stays firm. Traders expect short-term bonds to make up about 35% of borrowing, up from 31% in the first half, while strong appetite for 5-7 year securities could influence the maturity mix.
RBI May Skew FY27 Borrowing Toward Shorter Bonds as Liquidity Stays Flush
RDU Global Wire
Macro Economy & Fiscal Policy Desk
The Reserve Bank of India is expected to tilt the government’s borrowing programme toward shorter-tenure securities in the second half of FY27, as surplus banking system liquidity remains elevated and demand for near-dated paper stays firm. Traders expect short-term bonds to make up about 35% of borrowing, up from 31% in the first half, while strong appetite for 5-7 year securities could influence the maturity mix.
Editorial & Verification Notice
Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.
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