More rate cuts from Asia’s most accommodative central bank this year will help India’s sovereign bonds post modest gains despite the lingering fear of the government missing budget targets.
The yield on the new 10-year bond due in 2029 is likely to drop to 6.38 per cent by December-end, and further to 6.30 per cent by March, according to the median estimates in a Bloomberg survey of 12 traders and fund managers. It rose four basis points to 6.51 per cent on Friday.
The $20 billion tax break to companies and the sluggish growth in revenue have led to concerns about