The yields in the government bond market have softened marginally from the previous day's close. The RBI revised up its inflation projection to 5.1% for the first half of 2018 from 4.3% to 4.7% projected earlier. In the near term, we see the possibility of some decline in bond yields. During the same period, the bond yield has also increased in five developed/ developing countries (China, Germany, UK, US and Euro Area) and it is within the range of 22 to 42 bps, said the report. "We believe that currently, the 10-year G-sec yield in India are at elevated levels and not in sync with macro fundamentals.

Source: dna February 08, 2018 01:03 UTC