Amid liquidity and inflation concerns, government's market borowings have come down by 21 per cent to Rs 85,000 crore (Rs 850 billion) till November 25 this fiscal.
During the next fortnight, government is scheduled to borrow Rs 8,000 crore (Rs 80 billion) from the market, PNB Gilts said in a report on Monday.
Till November 25, government mopped up Rs 85,000 crore from the market, which is 56.41 per cent of the budgeted borrowings of Rs 1,50,681 crore (Rs 1,506.81 billion) for this fiscal.
The Centre's market borrowing so far this fiscal has been significantly lower compared to Rs 1,08,000 crore (Rs 1,080 billion) during the same time in 2003-04.
With the cancellation of the scheduled auction of Rs 15,000 crore (Rs 150 billion) and the proposed reduction in the second-half auction calendar, government is scheduled to borrow only Rs 20,000 crore (Rs 200 billion) in the remaining part of this fiscal, PNB Gilts said.
Net borrowings after redemption of securities worth Rs 52,316 crore (Rs 523.16 billion) came down by almost 55.5 per cent to Rs 32,684 crore (Rs 326.84 billion) till November 25 this fiscal compared to Rs 73,532 crore (Rs 735.32 billion) in the year-ago period.
Due to the huge surplus in government's accounts, the Reserve Bank had cancelled the Rs 5,000 crore (Rs 50 billion) auction during last fortnight.
On the bond market scenario, PNB Gilts said: "The gilts market are caught in the grip of 'triple vices' of liquidity, inflation and supply concerns."
Forex intervention along with the continued inflows would ensure necessary liquidity in the system, it said.
Regarding inflation, PNB Gilts said fiscal measures coupled with the base-effect should gradually calm the headline inflation numbers in the weeks ahead.