Bond Yields hitting the 3 month high of 7.45% by Mr. Jayesh Faria, Motilal Oswal Private Wealth
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/02/8197c1831d44b2247d735e3171cec143.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below Quote on Bond Yields hitting the 3 month high of 7.45% By Mr. Jayesh Faria, Associate Director, Regional Head – West, Motilal Oswal Private Wealth
India 10 year bond yield hits the high level of 7.45% which is the highest since November 22, this is an indication of nervousness in the market. In the last policy meeting, MPC refrained from giving forward guidance and retained the optionality to be on either side based on incoming data to change their stance to neutral on interest rates. The market is still worried about domestic inflation numbers and global issues like the Ukraine war etc., adding to discomfort with growth projections. The Yield curve in the last couple of weeks has been flat due to monetary policy tightening, normalization of liquidity by RBI, and global factors. There was hardly any liquidity premium left for locking in yield beyond 5 years of maturity. The term spreads between 5-10 years of maturity have been compressed to only 10bps as compared to 100 bps in 2020. So this increase in the yield will force interest rates to move to the new range of 7.50% to 7.75%.
Market experts feel that policy rates may have peaked and real rates would gradually increase with the easing of inflation. On account of global and domestic factors like Global Central Banks’ policy actions, currency, inflation, crude oil, and geopolitical events, yields may remain volatile with an upward bias. This will be a good time for investors to lock in higher rates rather than take credit risk.
Above views are of the author and not of the website kindly read disclaimer
![](https://portfolio.investmentguruindia.com/uploads/news/jul04v89_Wex0B3E.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/religare broking.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/HDFC Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Zomato07.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Piyush Goyal07.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/jul04v38_zDiylqc.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Prashant Thakur ANAROCK Group.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/jul03v152_BhgJWbe.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Shrikant Chouhan.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/aecd4f4a5e886b873aa68500d027acd0.jpg)
We anticipate immense potential benefits from the upcoming Sovereign Gold Bond Tranche in FY...
![Weekly Market Analysis : Markets strengthened recovery and gained nearly 2% in the passing week Says Mr. Ajit Mishra, Religare Broking](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/cc796169e4f7c012914c95f4a8efe430.jpg)
![Weekly market outlook : The market is eagerly awaiting data on inflation and industrial production to provide further guidance Says Vinod Nair, Geojit Financial Services](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/5f1fa5f12be5ac87ff9258ea3909f0f8.jpg)
![Monthly Debt Market Update, September 2023: CareEdge Ratings](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/c5541407585e9dfdc52f905c92d59e61.jpg)
More News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/05/23ba53031bc707b3252235f8100b4623.jpg)
Market Quote 18 May 2022 By Vinod Nair, Geojit Financial Services
![Daily Market Commentary : Nifty opened gap up and maintained its strength throughout the session to finally close at 19812 levels Says Mr. Siddhartha Khemka, Motilal Oswal](https://portfolio.investmentguruindia.com//uploads/news/Broker_5.jpg)
![Market Wrap Up by Shrikant Chouhan, Head Equity Research, Kotak Securities Ltd](https://portfolio.investmentguruindia.com/uploads/news/Shrikant Chouhan.jpg)
![Market Wrap Up : US bourses turned catalyst for the weakest close in the last four months Says Rajesh Bhosale, Angel One](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/02/08c89ae3defc41f2ef89c48dfa2126be.jpg)