Quotes from Standard Chartered:
-Bond markets liked the Indian government’s commitment to fiscal consolidation, the extension of the withholding tax cut (to 5%) to June 2017 and the reiteration of the intent to allow international settlement of Indian debt securities. Notwithstanding these medium-term positives, IGBs traded range-bound, with the benchmark 10Y IGB hovering between c.8.65% and c.8.75%.
-We retain a Positive outlook on IGBs and await better entry levels on IGBs in the belly of the curve. Near-term, key rate-market concerns are adverse monsoons, heavy IGB supply in July and August and changes in tax treatment for debt mutual funds. However, favourable inflation dynamics – we expect June CPI at 7.3%, the lowest since the series began – are likely to limit any substantial sell off in the IGBs.
Published: 2014-07-11 06:03:00 UTC+00
Outlook for Indian Government Bonds
No comments:
Post a Comment