Shorter-duration funds a good bet amid rising rates, say analysts

In its April 8 monetary policy review, the Reserve Bank of India (RBI) signalled that from being supportive towards growth, its focus would now shift towards reining in inflation

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The March consumer price index (CPI)-based inflation came in at 6.95 per cent, the third straight month when it exceeded the RBI’s inflation mandate of 4 per cent plus or minus 2 per cent

Sanjay Kumar Singh

5 min read Last Updated : Apr 16 2022 | 6:05 AM IST

The yield on the benchmark 10-year government security (G-Sec) has seen a sharp spike in the recent days. From 6.66 per cent on February 18, it has risen to 7.22 per cent (April 13).

In its April 8 monetary policy review, the Reserve Bank of India (RBI) signalled that from being supportive towards growth, its focus would now shift towards reining in inflation. Debt mutual fund investors need to realign their portfolios as a result.

Rising yields

The government’s borrowing programme for financial year 2022-23 (FY23) was announced in the Union Budget on February 1. “This was higher than market expectations, causing the

Topics : Reserve Bank of India Bond Yields India inflation monetary policy benchmark yields