Taper may push yields on domestic bonds upwards: Arun Srinivasan

Arun Srinivasan, senior executive vice president and head of fixed income, ICICI Prudential Life Insurance says 10-year G-sec benchmark may inch closer to 6.40-6.45 per cent by 2021 end

With the rise in commodities prices and domestic growth picking up, inflation needs to be watched closely, says ARUN SRINIVASAN, senior executive vice president and head of fixed income, ICICI Prudential Life Insurance. He tells Ashley Coutinho that the 10-year G-sec benchmark may inch closer to 6.40-6.45 per cent by 2021 end. Edited excerpts:
 
 What do you make of the recent Reserve Bank of India (RBI) policy review?
  
While the RBI kept rates unchanged, this policy was important as it took steps towards rate normalisation. Upscaling of VRR (voluntary retention route) amount by Rs 2 trillion shows the RBI