RBI may tilt govt borrowing toward shorter-tenure bonds in H2
In short
The RBI is expected to shift more government borrowing into shorter bonds in the second half of FY27, according to an Economic Times summary.
Traders expect short-term securities to rise to 35% of borrowing from 31% in the first half. The final plan is not confirmed, and the report does not say when the RBI will announce it.
What the reporting says
The RBI is expected to tilt government borrowing toward shorter-tenure bonds in the second half of FY27, according to an Economic Times market summary. Traders expect short-term securities to make up 35% of borrowing, up from 31% in the first half, as surplus banking liquidity stays elevated and demand for 5-7 year bonds remains strong. The exact issuance plan has not been officially confirmed.
Why it matters
The RBI is expected to favor shorter-tenure government bonds in the second half of FY27, with traders anticipating short-term securities at 35% of borrowing versus 31% in the first half. The report cites elevated surplus banking liquidity and strong demand for 5-7 year bonds. The immediate implication is a possible shift in supply across the bond curve, but the RBI has not officially confirmed the borrowing mix.