India’s sovereign bond yields will stay anchored near current levels in coming months before starting to spike higher toward year-end, according to a 25-year bond-market veteran. Consumer prices will start to rise as the current virus wave subsides, and that will also convince policy makers to reduce stimulus, she said. Progress toward normalization in the South Asian nation has seen a massive setback in recent months as the nation suffered one of the world’s worst outbreaks of the pandemic. Debt purchasesInflation data in recent months have been mixed. The central bank has instead chosen to pump extra liquidity into the financial system and buy bonds to cap yields.

Source: Mint June 01, 2021 11:37 UTC