HALISTER1: India Short-Term Bonds Outperform as Banks Look to Deploy Funds

India Short-Term Bonds Outperform as Banks Look to Deploy Funds

(Bloomberg) -- Yield on India’s 7.28% govt notes due 2019 has fallen 11 bps to 7.257% and yield on 8.27% bonds due 2020 has dropped 10 bps to 7.311% since close on April 5 when RBI announced changes to its liquidity management framework.
  • “The liquidity improvement has led to banks looking to deploy funds in the shorter papers,” Anoop Verma, Mumbai- based vice president at DCB Bank, says in interview; NOTE: RBI to move away from keeping cash tight
  • Yield on benchmark 7.59% bond due 2026 has declined 1 bp to 7.454% since April 5
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Anoop Verma (DCB Bank Ltd)

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