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Name: DSP MF's Sandeep Yadav Gives Projection For Indian Bond Yield. Expects It To Go 6.8%
Uploaded: 2024-04-28T11:00:03.354Z
Duration: 2 min 27 s
Channel: Business Today

Business Today

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Sandeep Yadav, of DSP Mutual Funds, forecasts a 40 to 50 basis points downgrade in Indian bond yields for the current fiscal year. He emphasizes that Indian bond movements are influenced not only by inflation or RBI rates but also by factors such as supply-demand, and fiscal considerations. He anticipates bond yields reaching 680 levels within this year. Dive deeper into his insights by watching this excerpt. Watch: https://lnkd.in/gFGHVUff | #usyield #indianbondyield #sharemarket #mutualfunds #investing

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Where do you see the yield? I just want to understand December 31st, 2024, where is the US yield headed and given that you are thinking of A50 basis point cut in India, where is the 10 year Indian yield likely to be? Absolutely. So I, I, I don't know the latest size, but I don't think it's, uh, significantly higher because we cannot take any more new money because there's an RBI limit on investing in a broad ETF and we cannot take any more money from our clients. So unfortunately, it's quite frozen for the time being until RV increases the limits. But looking at the second part of the question, where do I see Indian bonds yields if there's a 50 basis point rate cut? Well, to be very honest, in India, especially lately, it's not the inflation or the RBS rate cut trajectory. Which is going to decide the US Indian use movement rather India movement is being driven by extraneous factors like demand and supply and the fiscal deficit and of course the government were borrowing which has been much lower this year than last year and I'm not even talking about the bond inclusion which will come later this year. So I believe Indian bond deals with react much, much before the rate cuts happened, not because they are reacting to the expected rate cuts, but just because the extra demand is going to really swamped the market. We expect around 680. Levels to be released maybe the somewhere in the second-half of this year. I think that's at least for me it's right on the path for that are 10 years should hit 680 most probably lower than that, but we'll see how data pans out at that time to revise our estimates. OK. Ladies and gentlemen, let me just simplify this for you by 680 actually Sandeep means that the 10 year yield will be at 6.8%. What's what's the drop in BPS that you're looking at between then and now? Sorry, dropping basis points, I mean it's 7.18 now. Yeah, it's around 7.20%. So you could say 40 basis .0 point, 4% is where we see of course no one is. We are not putting a hard target of 6.80. It could very well go to 6.70 or so, not much of A. So 40 to 50 basis point downward move is what we're expecting in the second-half of this.

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Business Today’s Post

DSP MF's Sandeep Yadav Gives Projection For Indian Bond Yield. Expects It To Go 6.8%

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