RBI Rate Cut May Lower Yields; Govt Plans Rs26,000 Cr G-Sec Buyback

Bond yields in India are expected to go down following the recent frontloaded rate cut by the Reserve Bank of India (RBI), says economists ANI spoke with.

- TDG NETWORK

The economists noted that the rate cut is likely to influence the market to adjust to a revised and more accommodative interest rate outlook, pushing dated government securities (G-sec) yields down further.

Debopam Chaudhuri, Chief Economist at Piramal Group told ANI "The frontloaded rate cut is likely to drive a further easing in dated G-sec yields as markets adjust to a revised interest rate trajectory. The RBI's shift to a neutral stance could be initially interpreted as a signal of a pause in the rate-cut cycle."