Summary
Debt market outlook for June 2024 is positive due to various triggers like government support, RBI surplus transfer, improved ratings, and economic growth.
Key insights
- Government and RBI support measures, along with positive economic indicators, create a conducive environment for bond market growth.
- RBI’s cautious stance on rate cut reflects considerations of inflation and economic momentum, influencing market sentiment.
- FPI inflows and positive liquidity outlook in the banking system are expected to drive demand for government bonds.
- Global central banks’ easing policies may impact global bond yields, contributing to the downward trend.
- Expectations of a reduction in government borrowing and favorable budgetary measures are likely to support bond market stability.
- Consistent economic growth and foreign inflows position India’s bond market as an attractive investment destination.
- Market dynamics indicate a potential shift towards lower bond yields, presenting opportunities for investors to benefit from the trend.
