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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.
India (LOCATION) DBS Bank Ltd. (ORG) Trust Asset Management Pvt (ORG) the Reserve Bank of India’s (ORG)
Originally published by Bloomberg Markets Read original →