Gross FY15 borrowing seen at Rs 6.25 trillion: JPMorgan
Feb 14 2014
The investment bank adds net issuance should be Rs 4.7 trillion, based on the government's forecast of a 4.2% fiscal deficit for FY15 and 88% financing via government bonds.
J PMorgan adds RBI has also conducted a debt swap for Rs 12,000 crore out of Rs 1.7 trillion redemptions for fiscal 2015.
These factors work out to a gross borrowing requirement of Rs 6.25 trillion for fiscal 2015.
J PMorgan continues to remain tactically long on 5-year bonds as technicals will remain favourable over the next couple of months.
Finance Minister P Chidambaram will present an interim budget on Monday, the last one before general elections due by May.