Moneycontrol
Last Updated : Jan 01, 2018 10:42 AM IST | Source: CNBC-TV18

Cancellation of sale of RBI's bonds was momentary positive: A Prasanna

Reserve Bank of India (RBI) cancels sale of two bonds scheduled for Friday. In an interview with CNBC-TV18, A Prasanna, Chief Economist at I-Sec PD shared his views and outlook on how the primary bond market will react.

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Reserve Bank of India (RBI) cancels sale of two bonds scheduled for Friday. In an interview with CNBC-TV18, A Prasanna, Chief Economist at I-Sec PD shared his views and outlook on how the primary bond market will react.

Cancellation was a momentary positive on Friday but it just means that more borrowings have to be completed in fewer weeks in this quarter, he said.

Most of the negatives are priced in but the issue is that there is still a lot of uncertainty about the next year fiscal deficit borrowings also. So till the time we get clarity on that – which we will get on the day of the Budget - I don’t think anyone can say that the worst is behind us, he added.

Something like 7.25-7.40 is the range I would look at in the run up to the Budget and then the Budget will give much clearer direction, he added.

For more, watch accompanying video...
First Published on Jan 1, 2018 10:34 am

tags #Economy

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