Indian rupee ended lower at Rs 47.06 per USD as against its previous close of Rs 47.
The widely traded 7.59%, 2016 paper closed higher at Rs 104.358 as against its previous close of Rs 103.66.
Vineet Malik, Director & Head-Interest Rates at HSBC India spoke exclusively on CNBC-TV18. Also see accompanying Video.
Q: How do you see the ten year going from hereon? Is there an acceptance in the market completely that there won’t be anymore rate cuts from the RBI? Is that factored in?
A: I think the market has factored that there won’t be any meaningful cuts from the RBI maybe there is an outside chance of another 25 but no meaningful cuts going forward.
Q: How are you looking at the rates for the next six months or for the rest of 2009? Do you suspect that economic activity may takeoff so much that combined with the fiscal deficit you could see the yields going all the way to 7% and beyond?
A: It’s very much possible. I think what we are probably seeing is the liquidity slowly starting to trickle into asset classes and you are already seeing it in the equity market, as more and more money starts shifting from fixed income instruments to risk taking asset classes – probably you could see the ten year yield grind up.
