homevideos Newsmarket NewsBond market's reaction exaggerated, says Neelkanth Mishra of Credit Suisse
Bond market's reaction exaggerated, says Neelkanth Mishra of Credit Suisse
India's bond yields on benchmark 10-year government yields shot up Tuesday after Finance Minister Nirmala Sitharaman presented the budget. The yields rose 15 basis points (bps), posting the biggest single-day rise since May 2020. Neelkanth Mishra of Credit Suisse believes the bond market's reaction was "exaggerated."
India's bond yields on benchmark 10-year government yields shot up Tuesday after Finance Minister Nirmala Sitharaman presented the budget. The yields rose 15 basis points (bps), posting the biggest single-day rise since May 2020. Neelkanth Mishra of Credit Suisse believes the bond market's reaction was "exaggerated."
“I do think there has been an overreaction and I do think that this will correct because eventually it is the net borrowing that actually happens that matters,” he said.
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On Wednesday morning, bond yields were up to 6.828 percent, levels last seen in July 2019.
Mishra also said the jump of 2 lakh crore in capital expenditure (capex) is "not a massive jump." Finance Minister Nirmala Sitharaman stepped up the outlay for capex by over 35 percent to Rs 7.50 lakh crore for the financial year 2023. It was Rs 5.5 lakh crore in FY22. Mishra said expectations for fiscal deficit have now moved to 6 percent from 3 percent earlier.
Everyone is now focusing on how productively the government can spend, Mishra told CNBC-TV18.
For the full interview, watch the accompanying video
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