MFs Continue to Cut Positions in Long-Duration Govt Bonds

The yields touched a four-month high of 6.51% on Wednesday

- CHRISTINA TITUS

Many big mutual fund houses have been trimming their government securities (g-sec) position significantly in long-duration papers in anticipation of no rate cut in the current financial year and worrying external environment, market participants said.

While the sell-off began in June after the Reserve Bank of India (RBI) changed its stance to 'neutral' from 'accommodative,' it has gained traction after the August policy. The yields also touched a four-month high of 6.51% on Wednesday.