Following a steep jump in bond yields following the announcement of a record borrowing programme, India cancelled government securities auctions scheduled for February 11, according to a government statement released on Monday.

On February 11, India's government intended to sell USD 220 billion in bonds. "Following an assessment of the Government of India's cash situation, it has been decided, in collaboration with the Reserve Bank of India, to cancel the auction of all securities scheduled for February 11, 2022," according to a government statement released late Monday.

Following the announcement of the record borrowing plan of 14.95 trillion rupees for 2022/23 on Feb. 1, India's 10-year bond yields soared to a more than two-and-a-half-year high. For 2022/23, the market was expecting a 12 trillion to 13 trillion rupee programme.

The government has outlined a larger-than-expected plan to boost India's growth rate to 8%-8.5 percent in the coming fiscal year. A new date for the sale was not mentioned in the official statement.

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