Higher volatility to persist due to fiscal slippage, says Pankaj Sharma

Bonds do not like fiscal indiscipline and the same is reflected in the rise in yields, says Pankaj Sharma, CIO. Edited excerpts

Bonds do not like fiscal indiscipline and this is reflected in the rise in yields, says PANKAJ SHARMA, chief investment officer (fixed income), DSP BlackRock Mutual Fund. A reversal in the interest rate stance may happen sooner than later, he tells Ashley Coutinho in an interview. Edited excerpts:

The bond market has seen a lot of action as the government’s fiscal math did not play out as expected. Will this volatility continue?

There is an upward shift in the Centre’s fiscal deficit from their earlier glide path for FY18 at 3.2 per cent and FY19 at 3 per cent.