Will the volatility in bond markets stabilize by March?
Answer transcript: Volatility in the bond market will not stabilize but its range has come down substantially. There could be positive and negative surprises but I don't see volatility coming down a lot from here on because there are so many moving parts to it - the growth rate, the inflation expectations, the money supply and the global positions. The fourth one - foreign investors investing in fixed income in India is a recent phenomenon. These 4 primary factors are very hard to anticipate but this volatility for investors will be nothing like what we see in equity.
This article was originally published on March 23, 2017.