Investors urge India to cut long-bond supply

Investors in India's bond market are requesting a reduction in the supply of ultra-long bonds for the upcoming fiscal year starting April 1. They suggest limiting these bonds to 34%-35% of total borrowing due to weak demand. The Indian government plans to borrow 14.82 trillion rupees (about $171 billion) next fiscal year. Currently, ultra-long bonds maturing in 30, 40, and 50 years account for about 38% of bonds sold this year. Bankers also propose that the government increase bond sales in the first half of the fiscal year. This aligns with past trends where nearly 60% of annual bond supply is sold from April to September.