Greater opportunities beckon in new year
Dec 28 2012, 00:11 IST
absorb any additional supply based on banks’ additional SLR demand, RBI’s OMOs, & demand from FIIs, MFs, pension and insurance funds. Further the government seems intent to remain on the path of fiscal consolidation even in FY14 despite that being an election year.
Going into 2013, the bond market will find support from falling inflation, moderate growth trends, manageable twin deficits and monetary easing measures. The demand-supply dynamics will remain favorable and RBI might cut repo rate by 50-75 basis points in next 3-6 months. Bond yields are expected to move down meaningfully. We expect the curve to bull steepen over the next 12 months, thus presenting investment opportunities across the yield curve.
The author is head of fixed income, Reliance Capital Asset Management
Previous Story Unravelling contingent & commitment contracts Next Story DDA invites suggestions on development corridors
Reader's Comments| Post a Comment
Be the first to comment.
