The 10-year authorities yield sustaining at 6.10 % seems to be tough within the close to time period, mentioned Lakshmi Iyer, CIO-Debt and Head Product at Kotak Mahindra AMC on Tuesday. The view comes after the final bond public sale of the present monetary yr, scheduled on March 26 was cancelled.
“This is not completely priced. The announcement was more of conjecture for the market and after the announcement yesterday, it could mean positive news,” she instructed CNBC-TV18.
There may very well be a fairly good rally in market opening in the present day, Iyer added.
On 10-year authorities yield’s sustainability, she mentioned, “Sustainability below 6.10 percent immediately may be difficult because it is one-off and then going into April you have supplies again. So sustaining them may be difficult but yes, it could test those levels for sure.”
On the Securities and Exchange Board of India’s (SEBI) new guidelines on valuing the perpetual bonds, Iyer identified, “It is one category of the fraternity, which subscribers to these bonds where you could see tepid response going forward. However, if you see over the past whole week and even starting trading session yesterday, there has been the amount of buying appetite, non-MF volumes are not significantly high but that goes to prove that if credibility or the creditworthiness of the underlying issuer is not a concern, there are takers or buyers for these instruments. That is indeed positive news.”
The glide path is a much-needed respite for the sleek implementation of this round, she mentioned.
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