HALISTER1: India Bonds May Be Slow to Reflect Muted Growth: Trust Capital

India Bonds May Be Slow to Reflect Muted Growth: Trust Capital

(Bloomberg) -- India’s bond markets may be slow to react to sluggish growth and the 10-year yield should remain within the 6.5-6.7% range, Sandeep Bagla, associate director at Trust Capital Services says.
  • “Bond markets were not expecting a rate cut from RBI as they are fixated on their inflation mandate. They will react to slowing growth with a lag only”
  • Bond markets are disappointed but only a little; range of 6.50% to 6.70% should hold for some time to come
  • System has excess SLR, so RBI’s move today has very marginal impact on bonds
  • NOTE: RBI kept rates steady but cut a key bond holding ratio by 50bps to 19.5%
  • Yield on 10-year govt bond gains 4bps to 6.69%
  • USD/INR down 0.4% to 65.23
To contact the reporter on this story: Subhadip Sircar in Mumbai at ssircar3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Sandeep Bagla (Trust Capital Services Pvt Ltd)

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India Macro News

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