India 10-year bond yield remains below 10% after budget

India's 10-year government bond yield in July fell below 7%, and has remained at a low level since recording 6.95%, which is the first low level in 2 years, in early June.

According to the same budget, although loans were reduced by 100 billion Indian rupees to 14 trillion 100 billion Indian rupees, the spending deficit was 4.9%, which exceeded 5.1% of the February interim budget, making the government slightly more conservative than expected and suggested by the market.

The lack of aggressive spending increases strengthened the view that Prime Minister Modi holds a large influence within the government despite the need for the Prime Minister's alliance to be elected by a majority.

Prime Minister Modi is aiming to maintain a policy that has made India grow the most among major countries in the past few years and has attracted large-scale inflows of foreign capital into India G Securities, and this has boosted Indian bonds.