Indian bonds experienced a rally, with the benchmark 10Y yield dropping significantly after the government announced a borrowing program below market expectations. For FY24-25, the government plans to issue 14.13 tln rupees (USD 170 bln) in bonds, less than the 15.2 tln rupees forecasted by Bloomberg. The announcement led to a notable decrease in yields, with the 10Y bond yield falling by nine basis points to 7.06%, marking the largest drop since May 2023. The corporate bond market also saw yields on top-rated three-year notes decline by 10-12 bps.