HALISTER1: Indian Bonds, Rupee to Outperform EM Asia in 2017, BofAML Says

Indian Bonds, Rupee to Outperform EM Asia in 2017, BofAML Says

(Bloomberg) -- Continuation of monetary policy easing, strong local demand for bonds and external buffers to help Indian assets, Bank of America Merrill Lynch strategists Adarsh Sinha and Rohit Garg write in Jan. 11 report.
  • Low sensitivity to USD, CNY and USD rates also significantly improves the outlook of local assets against a backdrop of higher USD rates, stronger USD and weaker CNY: BofAML
  • Recommends receiving 5-year India swaps vs Singapore swaps and flatteners in India 1-year 1-year vs 5-year NDOIS
  • Lowers benchmark 10-year yield est. to 6.20% by end-March from 6.60% earlier; sees yield at 6.50% by end-December vs 6.80% earlier
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Rohit Garg (Merrill Lynch & Co Inc)
Adarsh Sinha (Merrill Lynch Asia Pacific Ltd)

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