India's benchmark 10-year government bond yield is expected to trade in a range of 6.60% to 6.90% over the next one month, according to Puneet Pal, Head-Fixed Income at PGIM India Mutual Fund, who believes yields are unlikely to sustain below 6.60% despite their recent sharp decline.
Pal expects the Monetary Policy Committee (MPC) to raise interest rates in the second half of FY27 to keep real rates positive, even though average CPI inflation for FY27 is now expected to remain below 5%.
