Halister News

(Bloomberg) -- Societe Generale lowers yield forecasts for India’s 10-year bonds to 7.40% from 7.80% for both end-June and end-2016, strategists Frances Cheung and Amit Agrawal write in note today.

• From here, India’s bond yields should be range-bound in next 12 mos., as higher UST yields and supply side risks (mainly on state loans and quasi-sovereigns) are largely balanced by expected easing in benchmark policy rate (SocGen expects RBI to ease by 25bps), revised liquidity framework and govt’s commitment towards fiscal consolidation.
• Cuts yield predictions for Indonesia’s 10-year bonds to 7.85% from 7.90% for end-June and to 8.40% from 8.60% for end-2016
• These projections trimmed partially due to BI’s accumulated rate cuts of 75bps this year and recent strong rally; SocGen still expects yields to move higher over next 12 mos. premised on SocGen’s expected IDR depreciation
• Yield on India’s 7.59% debt due Jan. 2026 rose 4 bps to 7.477% on April 21; Indonesia’s 10-year rate steady at 7.457% today