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
RBI Governor Raghuram Rajan has warned that a "sharp" slowdown in China's growth posed a threat to the global economy, highlighting possible impact from the shadow banking system of its neighbour, the Reserve Bank of India said. Full Article