Reuters Market Eye - DBS says India's 10-year bond yield will be the only one falling over the next six months among the 10 Asian markets it tracks.
DBS expects RBI to gradually lower rates at a pace of 25 bps per quarter, forecasting that demand pressures behind inflation are easing considerably.
"The combination of high yields, a downward sloping forward path for policy rates and the prospect of more currency stability should see foreign interest in the gilt market remaining strong," DBS writes.
That's a contrast to Asia, where the prospects of stronger global economic growth and rising U.S. Treasury yields are putting bearish steepening pressure on the short-ends of Asian yield curves, it adds.
(Reporting by Subhadip Sircar)
Trending On Reuters
Two founding members of anti-establishment political Aam Aadmi Party (AAP) were ousted from its top decision-making panel on Saturday, deepening the rift in the party that is seen as a potential challenger to Prime Minister Narendra Modi. Full Article
Iran, powers close in on 2-3 page nuclear deal; success uncertain - officials Full Article