With the government facing a record-high deficit in its finances, the recent increase in market borrowings has resulted in an oversupply of g-secs, and a fall in prices. Yield, which is the ratio of interest paid and price, moves in the opposite direction of price movement.
Consumer goods manufacturers, expecting to see a revival of demand from the nearly Rs 16,500 crore Pay Commission arrears for government employees, are likely to be disappointed.
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