December 13, 2011 / 16:28 IST
The bond markets are presenting an interesting position. Bond prices have been going higher and bond yields head lower for incessantly past two week.
There have been handsome gains of about Rs 4-5 (from the lows that bond prices reached four-five weeks ago) for bond prices. Ashish Parthasarthy of
HDFC Bank expects 10-year bond yields to be in a broad range of 8.25-8.75% from now till March.
He also mentioned that a cash reserve ratio (CRR) cut is reasonably expected. Moreover, his forecast for the credit growth is around 17-17.5%.
Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos.Q: What is the market pricing in at this point in time? At 8.42%, is the yield telling you that a CRR cut is getting priced in on Friday?A: There is a reasonable expectation of CRR cut. That is not the only thing which has been priced in. The IIP figure came quite low. It
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