Banks want fewer long-term bonds issued in the second half of fiscal year 2026. They prefer more short-term bonds. Demand for long bonds from insurers and pension funds is weak. State bond supply is high. This mismatch pushes borrowing costs up. The 10-year yield recently increased. Concerns about GST revenue shortfalls also contribute.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets