Reading the bond tea leaves: Are bond yields likely to remain high in near future?
New Delhi, May 28 -- The signals (indications) from the bond markets are that investors in this asset class want more (returns) for their invested money. Experts feel that the days of easy money will not come back anytime soon.
Bond markets globally are signalling that they need some clarity, primarily on the geopolitical front, before any rally is seen in this asset class.
"Bond markets are signalling heightened inflation risk for economies across the globe," says Saurav Ghosh, co-founder of Jiraaf. In India, the 10-year G-Sec yield has moved back above 7%, rising from 6.8% in April 21 to around 7.1% in May, indicating that markets are beginning to price in the risk of a more hawkish RBI response if inflation pressures persist.
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