Business & Finance
Traders Bet RBI Hold, Cash Boost to Steepen India Yield Curve
Key Points
Traders Bet RBI Hold, Cash Boost to Steepen India Yield Curve India’s short-dated bonds will outperform debt with long duration, as the central bank is expected to keep interest rates on hold and banks are set for a large cash surplus, according to traders. DBS Bank Ltd. and Trust Asset Management Pvt. see the yield curve steepening further after the gap between 30-year and five-year yields widened to more than 100 basis points following the Reserve Bank of India’s June 5 measures to boost...
Traders Bet RBI Hold, Cash Boost to Steepen India Yield Curve
India’s short-dated bonds will outperform debt with long duration, as the central bank is expected to keep interest rates on hold and banks are set for a large cash surplus, according to traders.
DBS Bank Ltd. and Trust Asset Management Pvt. see the yield curve steepening further after the gap between 30-year and five-year yields widened to more than 100 basis points following the Reserve Bank of India’s June 5 measures to boost capital flows.