Union Budget 2014: Finance minister sparks confusion on fiscal deficit target

Mumbai: India`s benchmark 10-year bonds gave up some of their gains on Thursday over confusion about the government`s fiscal deficit target for the current fiscal year.

Finance minister Arun Jaitley had earlier announced the country would stick to the previous government`s fiscal deficit target of 4.1 percent of gross domestic product for the year ending in March 2015, but later in the speech said the target stood at 4.5 percent in a passing reference.

Traders said the contradiction had created confusion, although they said Jaitley may have misspoken.

The benchmark 10-year bond yield was trading at 8.67 basis points, off a session low of 8.64 percent but still down from its 8.73 percent close on Wednesday.