New Delhi, Oct. 16 -- As the Reserve Bank of India (RBI) moves into a rate-tightening cycle, Suyash Choudhary, head of fixed income at Bandhan AMC, explains what higher interest rates mean for savers and investors.

In a conversation with Mint, he discusses the expected rate trajectory, portfolio duration, global bond allocation and why investors should prioritise quality over high yields in fixed income.

Market interest rates do not always move in tandem with RBI policy decisions. Even when the RBI was cutting rates previously, market bond yields in India were rising due to broader macroeconomic factors. The RBI is normalizing policy in response to global and domestic pressures. Globally, there is intense competition for capital, driven...