Bond Traders Optimistic
Bond market traders are optimistic that surprises will not be large in the coming fiscal. “It is true that there is a little uncertainty this time round. But the market is currently in a wait-and-watch mode. Ultimately, bond yields will react to inflation numbers,” said Sandeep Bagla, associate director at Trust Capital.
The benchmark 10-year bond yield had eased to 6.37% just after the budget announcement but recovered to close at 6.43%. It ended at 6.40% on Thursday. Reserve Bank of India will announce its interest rate decision in a policy review on February 8.