The Indian government may hold more debt auctions after its last scheduled tender for the fiscal year on Friday, two people familiar with the matter said, to take advantage of the relatively low cost of borrowing.
The government had cancelled its last two weekly debt sales, each worth 240 billion rupees ($3.2 billion), as global yields surged and it had achieved a comfortable cash balance for the fiscal year ending on March 31.
But in a move that surprised markets, the government said on Monday it would borrow 230 billion rupees at the last bond sale for the current fiscal year on Feb. 25.
The sources said that while the government had a comfortable cash position even without further auctions, it would consider completing its planned borrowing if market conditions were appropriate.
“(We) will not commit if this would be our last borrowing for the year. We are watching the yields and will take a call accordingly,” a senior official directly involved in the matter told Reuters.
