Arun Jaitley sparks confusion on fiscal deficit target

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.

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.

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Finance minister Arun Jaitley had earlier announced the country would stick to the previous government's fiscal deficit target of 4.1% of gross domestic product for the year ending in March 2015, but later in the speech said the target stood at 4.5% 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% but still down from its 8.73% close on Wednesday.