NEW DELHI, Sept. 25 -- India's government bond yields are near 10-year lows and the Reserve Bank of India (RBI) believes it should be given credit for managing the government's borrowing plan so far this year.
That was Reserve Bank of India governor Shaktikanta Das's message in a recent event where he said that the borrowing programme has been non-disruptive. But in a year where the economy is expected to see its worst recession, the sovereign bond market is expected to witness a rally.
The 10-year benchmark sovereign bond yield had dived below 6% in 2008 when the financial crisis hit. Given that in many aspects the current crisis from a pandemic has been far more severe, yields should be lower.
But they are rising now. The 10-year yield...