Bond Veteran Makes Contrarian Bet India Yields Will Decline
- 10-year yields may drop to 5.50% in six months: BofA’s Mehta
- RBI bond purchases, rate cuts to tone down curve steepness
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Investors predicting India’s bond yield curve to steepen further are probably reading it wrong.
That’s the view of Jayesh Mehta, a veteran trader at Bank of America. He thinks the record $88.5 billion of bond purchases by the central bank this fiscal year and a further cut in interest rates will tamp down the curve’s steepness from near a decade high, pushing down yields on the most-traded 2029 notes to 5.50%, the lowest since 2009.