"As December is generally a sluggish month, market yields may not move much either side. We expect 10Y G-Sec yield to trade in a range of 7.15%-7.25% with a downward bias," says Avnish Jain, Head- Fixed Income, Canara Robeco Mutual Fund.
Increasing interest rates indiscriminately affects all borrowers, but tightening prudential norms, particularly in high-risk sectors like unsecured lending for discretionary purchases, demonstrates a more strategic shift in RBI's approach
Akhil Mittal, Senior Fund Manager at Tata Asset Management, believes that buying US bonds with elevated interest rates is a good long-term investment. He expects central banks worldwide to push rates higher, resulting in elevated rates for a longer period of time. Mittal suggests looking at long-term durations for investing in US bonds, as shorter durations may lead to reinvestment risks. He advises diversifying 10-20% of a fixed income portfolio into US bonds, with a focus on medium to long durations.
RBI may hold rates, pivot to cuts from Q1FY25: Poll financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.