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Rajiv Anand, Head - Investments, Standard Chartered MF on Economic Implications.

Rajiv Anand, Head - Investments, Standard Chartered MF - Long-term Implications are Positive

The long-term implications are only positive for the bond markets. The underlying liquidity is still strong in the domestic markets. The rupee is stable now and has settled in a tight groove. The oil prices have also retracted from their highs and are currently down to $28-1/2. They are expected to drift lower.

Further, there is a strong possibility now that central banks across the globe will use lower interest rates to bring back consumer and business confidence and stave off any recessionary pressures. Bond markets are currently up across the globe. There was already an indication from Federal Reserve yesterday on an intermittent rate cut in the next 15 days to one-month. Hopes of a rate cut are already being factored in bond prices.