The market is willing to take either the liquidity risk or the price risk. So demand supply mismatch, excess borrowing programme and lack of assurance on liquidity is making the bond market nervous. While the US 10-year yield has remained around 2.4%, our 10-year yield has moved up by almost 100 bps. We have slight amount of distortion between bond market and equity market and if equity market starts becoming nervous about bond market, then certainly there will be correction.Definitely, we are in complete agreement. We are also telling them to have a long-term horizon.While we are bullish on the longer term outlook of the equity market, there is no denial to the fact that oil prices have moved up.

Source: Economic Times January 04, 2018 06:00 UTC