High borrowing costs in the domestic bond market are not ‘affordable’ when interest rates in the economy are low, India’s finance minister said on Friday.
“I won’t say I am concerned, but I am observing it,” Nirmala Sitharaman said in an interview with News18 television when asked about the recent rise in bond yields. “Also at a time when interest rates are otherwise low, bond yields becoming unsustainably high has a big bearing on the government.”