Apr 03, 2012 12:07 PM IST | Source: CNBC-TV18

See bond yields near 8.5% for three-four months: PN Vijay

Despite the Reserve Bank of India's surprise open market operation (OMO) action, the bond yields are still trading close to 8.6%. PN Vijay expects bond yields to be around 8.5% for the next three-four months.

Portfolio Manager, PN Vijay expects the much-talked about petrol price hike to be announced within the next one week. Given the high inflationary scenario, Vijay is sure if diesel and LPG prices will also be raised.

Despite the Reserve Bank of India's surprise open market operation (OMO) action, the bond yields are still trading close to 8.6%. He expects bond yields to be around 8.5% for the next three-four months.

"Overtime the bond markets may not touch 9% probably they may touch 9%, but the liquidity in the banking system itself has to improve and that will take a bit longer, he added.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: What are you hearing on the oil price hike, everyday we are hearing fairly dire cries from the oil marketing companies but everyday passes and we don

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