The US Junk bonds sold off as weakening growth prospects makes investors rush to sovereigns in search of yields. News of large farm-loan waiver and higher state governmental borrowings have pushed yields higher towards 7.45. With inflation risk lower, any spike in yields will be opportunities. Participants may soon position for a possible rate-stance change in the February MPC under the stewardship of a new governor and therefore risk-reward favours duration. MPC MEET EYEDNews of large farm-loan waiver and higher state governmental borrowings have pushed yields higher towards 7.45Participants may soon position for a possible rate-stance change in the February MPCThe writer is a market expert

Source: dna January 07, 2019 00:11 UTC