NEW DELHI The Reserve Bank of India Deputy Governor H.R. Khan on Tuesday said the government's commitment to meet its fiscal deficit target of 3.5 percent of gross domestic product for the year starting in April was positive for bond markets.
"Fiscal deficit is bond positive. Net borrowing is also lower so that makes our job a little easier," Khan told Reuters on the sidelines of a conference in New Delhi.
He, however, declined to comment on whether the budget unveiled by Finance Minister Arun Jaitley on Monday would impact the RBI's monetary policy stance.
India's benchmark 10-year bond yield fell 1 basis point to 7.61 percent on Tuesday after slumping 16 bps on Monday.
(Reporting by Neha Dasgupta; Writing by Rafael Nam; Editing by Malini Menon)
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