Lowering Government Yields
Government Security (G-Sec) yields could soften temporarily as the Indian government’s fiscal deficit may undershoot FY2021 Revised Estimate (RE) by Rs.50,000 crore to Rs.90,000 crore.
G-Secs are government debt issuances used to fund daily operations, and special infrastructure and military projects.
They guarantee the full repayment of invested principal at the maturity of the security and often pay periodic coupons or interest payments.
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