Ten-Year Bond Yields Near 24-Month High as Cash at Indian Banks Declines - Bloomberg

Ten-Year Bond Yields Near 24-Month High as Cash at Indian Banks Declines - Bloomberg

Like I had earlier pointed out on the push and pulls of Liquidity, this article has again stressed on the fact that bonds yields are rising.

Lenders borrowed an average of 88,860 Cr rupees ($20 billion) from the central bank’s repurchase auction window this week, compared to 63,400 Cr rupees last week, according to data compiled by Bloomberg.

I am still predicting yields to cool down once the Coal India IPO opens up. There is a big arbitrage opportunity for bond traders if they want to play the Gsec rally.

For the retail investors- stick to Income Funds and Gilt Funds with Average maturities between 8 & 11 Years.