Heightened uncertainty puts bond markets in unchartered territory: Chopra

From a one-year perspective, if there are no rate hikes and the 10-year g-sec yields stay at 7.25-7.50 per cent, investors can get 8-8.25 per cent for the year in short-duration funds

A sharp reversal in expectation has led to high volatility in the domestic bond markets, says AMANDEEP CHOPRA, group president and head-fixed income, UTI Mutual Fund. In an interview to Vishal Chhabria, he says if there are no mitigating factors in the Union Budget and the Reserve Bank of India’s (RBI’s) policy review, the 10-year government security (g-sec) yields could rise to 7.75 per cent. Edited excerpts:

The bond market has seen a lot of action recently, as the government’s fiscal math hasn’t played well. Even after the government cut its additional borrowing figure to Rs 200 billion, from Rs