HALISTER1: India’s Bonds May Rally Further on CPI Outlook: Trust Capital

India’s Bonds May Rally Further on CPI Outlook: Trust Capital

(Bloomberg) -- India’s bond-market rally could continue and even gather momentum, amid an outlook for consumer prices to decline further, says Sandeep Bagla, associate director at Trust Capital Services India, in an interview.
  • “It is expected that CPI over the next couple of readings could reach as low as 5.20%,” says Mumbai-based Bagla; says CPI’s trajectory has become more important than WPI’s
  • Sees 10-year govt bond yield falling to 6.90% over next few weeks
  • Related story: July CPI climbed 6.07% y/y, quicker than median est. +5.9% and above RBI’s band of 2%-6% for CPI
  • NOTE: July wholesale prices rose 3.55% Y/y; est. +2.84%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Sandeep Bagla (Trust Capital Services Pvt Ltd)

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