India's sovereign bond yields may stretch to April 2020 high, says expert

India's move toward higher bond yields and interest rates will be another milestone in the recovery of global financial markets from the ravages of the coronavirus.

India’s sovereign bond yields are likely to head sideways in coming months before starting to spike higher toward year-end, according to a 25-year bond-market veteran.
 

Signs of quicker inflation and concern the Reserve Bank of India will pull back on policy support should eventually put yields on a rising path, said Radhavi Deshpande, chief investment officer at Kotak Mahindra Life Insurance Co. in Mumbai. Consumer prices will start to rise as the virus wave subsides, and that will also convince policy makers to ease back on stimulus, she said.

“We expect the benchmark 10-year yield to head toward 6.50% as