HALISTER1: Nomura Recommends India Short-Term Bonds; Neutral on Longer Debt

Nomura Recommends India Short-Term Bonds; Neutral on Longer Debt

(Bloomberg) -- Yield curve expected to steepen in 2017, analysts Vivek Rajpal and Prashant Pande write in note Thursday.
  • Reasons include reduced need for OMO purchases after demonetisation, end of easing cycle, increasing supply of state bonds, higher U.S. rates, potential pickup in credit growth
  • Recommends investors take a buy-on-dips approach in front- end bonds; neutral on longer securities
  • Nomura says it favors 2s5s non-deliverable OIS steepeners
  • Says after expected February rate cut, 2s5s are likely to break through upper bound of current 20-30bps range it has been in since November 2016.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Prashant Pande (Nomura Holdings Inc)
Vivek Rajpal (Nomura Holdings Inc)

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