Views- I don’t expect yields to cool off or come down in the near future
I don’t expect yields to cool off or come down in the near future Ganti Murthy, Senior Fund Manager/ Fixed Income Professional Ganti Murthy, Senior Fund Manager/ Fixed Income Professional “I see yields moving up slightly if the crude price crosses 100 USD ”, said Ganti Murthy, Senior Fund Manager/ Fixed Income Professional in an interview with Anjali Raulgaonkar Excerpts: 1) Bond Yields are high. Fixed deposit rates are also high. Where do you see yields moving on from here in the near to mid-term and why ?. Yields are a function of demand and supply of money. In the current scenario, the central bank (RBI) has decided to make money dearer by keeping policy rates high with the laudable prospect of containing inflation. High demand for money results in higher yields. Investors want higher yields, RBI wants higher yields to cool down inflation, companies need money to finance their next phase of expansion meet demand and government needs money to finance its infrastructur