₹3 trillion—in extra foreign debt.Does the global market have an appetite for government bonds? Yields on Indian paper are reported to be above pre-covid levels.
A triumvirate of credit rating agencies has slotted our sovereign debt in the lowest bracket of investment grade, just a notch above junk.
An economic contraction, fiscal expansion and a borrowing binge at home are seen to have raised risks. Yet, this only means that the interest premium on offer may have to be a tad higher.
With global demand for low-risk paper soaring and yields dipping below zero, safe bonds that pay well could attract investors.