Is India inching closer to inclusion in the Global Bond Index?

The nervousness in the bond markets on account of higher inflation, larger supply of bonds in H2 and absence of RBI OMOs so far is evident

Abhishek Goenka, IFA Global

Abhishek Goenka, IFA Global

Abhishek Goenka Mumbai
Higher than expected domestic inflation is causing a section of the market to believe that we could possibly be at the bottom of the interest rate cycle. The Overnight Index Swap (OIS) markets are beginning to price out any further accommodation. Despite the sentiment in the bond index turning around post the Monetary Policy Committee (MPC) leaving rates unchanged and after partial devolvement of benchmark security on primary dealers (PDs), the Reserve Bank of India (RBI) has refrained from announcing an open market operation (OMO) so far.

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First Published: Aug 20 2020 | 1:49 PM IST

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