- “I see greater risk of an upward move in the yield, than downward”
- Key drivers will be a potential rise in “inflation, slowly but surely, and a sustained supply overhang from a large fiscal-deficit funding requirement”
- “While central banks elsewhere, especially those in the developed markets, are just venturing into policy easing, I believe the RBI’s easing cycle is over. I expect all these factors re-asserting themselves in pressuring bond yields higher”
IDFC Asset Management (Suyash Choudhary, head of fixed income)
- RBI’s stance “bodes well for bonds. Against this however, fiscal risks still linger and the market will have to contend with the associated higher supply”
- “The outlook is constructive given a global dovish policy pivot against a backdrop of slowing growth”
- “Most factors are positive for the bond market but there can be a lot of volatility on account of fiscal risks or a potential increase in oil prices. These are unforeseen events which can come in the way” of a rally
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