The nation’s current-account deficit widens by about $900 million for every dollar increase in oil prices. The shift in strategy seems to be paying off: yields on longer-dated securities are rising faster than on short-term debt. The RBI’s six-member policy panel left the benchmark rate unchanged last month, while raising its inflation forecast for the October-March period. “It’s better to be in the shorter-end of the curve, where you get more pick up in terms of yield. Nomura is cautious on the seven-to-15 year part of the curve, according to Vivek Rajpal, a rates strategist in Singapore.

Source: Mint November 08, 2017 06:00 UTC