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Below are Views On RBI announced a G-sec acquisition program By Mr.  Mahendra Jajoo, CIO fixed income, Mirae Asset Investment Managers

Much on the expected lines MPC reiterated its stance of maintaining accommodative policy as long as it takes for a sustainable recovery to shape up. In a direct measure to address the concerns on large supplies, RBI announced a G-sec acquisition program wherein RBI has given calendar as to the quantum and the time period in which it will buy g-secs from the secondary market. While this is likely to keep the market supported, governor did voice out slight concern on inflation backed by rising commodity prices and expectation of monsoon this year. Following which it marginally raised inflation expectation to 5.2% from the previous estimate of 5.0% for the next two quarters. With global market yields also stabilizing after falling from recent highs, bond yields are expected to remain range bound with a slight easing bias in coming months.

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