Retail inflation has seen a sharp slowdown in June while May industrial output has come in at 1.7 percent.
In an interview to CNBC-TV18, Amandeep Chopra, Group President and Head of Fixed Income at UTI MF assesses the impact on the bond market.
“The 10-year will test the previous low of 6.41 in our view. Market is still digesting the inflation data,” he said.
Fed's moderately dovish commentary is another trigger for the local market. We could see the 10-year yield head a little bit lower during the day, he believes.
The market has started factoring in a moderately dovish commentary from Reserve Bank of India (RBI) in the August policy, hinting towards another rate cut, said Chopra.
So, the market will start building in a very strong expectation of another rate cut down the line, he said.For full interview, watch video...