Despite softening of 10-year G-secs\, time not ripe for taking duration bets

Despite softening of 10-year G-secs, time not ripe for taking duration bets

Heres why investors should remain predominantly in shorter-maturity funds

Sanjay Singh 

The 10-year government bond yield has softened from its 52-week high of 8.23 per cent to 7.80 per cent currently. Many investors want to know if yields would soften further and whether it is time to increase duration bets. A number of factors have brought about the recent softening of the 10-year benchmark yield. “The Reserve Bank of India (RBI) has resisted calls for interest rate hikes to defend the currency.

It clarified that rate hikes will only be used for consumer price index (CPI) targeting. CPI outlook for now remains benign. That has helped to bring down the ...

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Read our full coverage on Government bonds
First Published: Mon, November 05 2018. 12:06 IST