Yielding To The Slowdown

It has been a bottomless pit for government security yields. With liquidity flooding the system and little opportunity to lend, gilt yields are likely to fall further, even though they are already at their historic lows.

Market participants are unable to take a view on where the southward journey will stop because yields have been falling beyond their expectations. Says Radhakrishnan Nair, managing director, CorpBank Securities Ltd,