SENSEX NIFTY
Feb 01, 2013, 05.33 PM IST | Source: Reuters

DBS expects RBI to gradually lower rates

DBS says India's 10-year bond yield will be the only one falling over the next six months among the 10 Asian markets it tracks

DBS expects RBI to gradually lower rates

DBS says India's 10-year bond yield will be the only one falling over the next six months among the 10 Asian markets it tracks.

DBS expects RBI to gradually lower rates at a pace of 25 bps per quarter, forecasting that demand pressures behind inflation are easing considerably.

"The combination of high yields, a downward sloping forward path for policy rates and the prospect of more currency stability should see foreign interest in the gilt market remaining strong," DBS writes.

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That's a contrast to Asia, where the prospects of stronger global economic growth and rising US Treasury yields are putting bearish steepening pressure on the short-ends of Asian yield curves, it adds.

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READ MORE ON  DBS, RBI, rates

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