“Some people have already started buying in the market. We expect some more people to start buying maybe in the second week of January onwards. I do not think people are going to wait till June inclusion so there will be enough buying coming in with the new calendar year coming in.”
And that is where we spiked up. I think it will still now track US yields tomorrow, it does not look like, but if hypothetically, if US will drop down, then definitely we will see some relief there on the bond side.
It has been a year of meticulous productivity and many successes for India, the world's fifth largest economy, and there are still more than two months to go.
The Reserve Bank of India (RBI) is expected to keep overnight rates more towards the Marginal Standing Facility (MSS) rather than the repo rate. The liquidity situation is expected to improve, although there may be some reduction due to the festive season. The RBI is likely to maintain a deficit for the time being and monitor inflation. The market was surprised by the announcement of OMO sales and the recreation of a 4% target.