With India’s 10-year bond yield hovering around the 7% mark, the fixed-income market is entering a more complicated phase. Global bond sell-offs, elevated US yields, oil prices and shifting expectations around RBI policy are creating a divergence across the yield curve.
While the recent rise in yields may make short-tenor bonds more attractive, the long end remains vulnerable to global rate pressures and domestic fiscal risks. Apoorva Javadekar, Chief Economist at Shriram Group, believes the 2-year segment offers a relatively attractive entry point, while investors should remain cautious on long-duration bonds.
