Do not expect bond yields to touch 8.7% levels: Axis Bank

Sharing the sentiment in the bond market, Partho Mukherjee, Senior VP Forex and Treasury at Axis Bank said that given the slowdown in India's growth numbers, it is not expected to see bond yields touching the levels of 8.7%. 

In an interview to CNBC-TV18, Mukherjee said the growth numbers are eyeing at the slowdown phase. "I do not anticipate the 10-year benchmark to rally substantially. I expect the range for the 10-year benchmark to be 8.40% to 8.55%," he further added. Below is an edited transcript of Partho Mukherjee's interview to CNBC-TV18. Also watch the accompanying video. Q: How would you sum up sentiment right now in the bond market given what has been indicated on the borrowing program and what kind of upside risk do you see for yields now? A: I am hopeful and the additional borrowing program at least is behind us. So, to that extent I am quite hopeful that going forward things would be relatively smooth for us. Q: Can you just give us a medium term range with regards to the 10-year benchmark? A: I don