Debt MFs eye big gains from Fed rate cut, see bond yields easing further

Yield on 10-year G-Sec slips to over three-year low of 6.23%

Debt fund managers are expecting sizeable gains from US Fed's rate cut to accrue across bond yield curve, with ten-year bond yields of government securities dipping 12 basis points (bps) on Wednesday, slipping to over three-year low of 6.23 per cent.

"There can be further easing of bond yields as the Reserve Bank of India (RBI) has also given the signal that it is ready to act in order to give a fillip to the economy," said Mahendra Jajoo, head-fixed income, Mirae MF.

Market participants say RBI can also take a cue from US Fed and take rate cuts to