PGIM India: Indian bonds stay attractive amid stability

Indian bond markets continue to demonstrate resilience, supported by stable macro-economic fundamentals and favourable demand-supply dynamics, as per Puneet Pal, Head of Fixed Income at PGIM India Mutual Fund.

- TBG NETWORK

Pal anticipates a gradual approach by the Fed to rate reductions. He argues that Indian bonds remain a lucrative investment option due to the country's robust underlying economic factors, including high real interest rates, which create room for potential rate cuts. The recent rate cut in the US increases the probability of similar actions by the Reserve Bank of India (RBI) in the near future. Bond yields generally move ahead of rate changes, making it a strategic time for investors to enhance their fixed-income allocations during yield upticks.