MPC Status Quo Signals Yield Focus on Liquidity Measures, Corporate Bond Reforms: Edelweiss Life CIO

By:- Ritesh Taksali, Chief Investment Officer, Edelweiss Life Insurance

The MPC stayed status quo as growth outlook improved and is expected to take a pause in the near term. With supply outstripping demand in the bond markets, further liquidity measures like OMOs will determine the path of yields going forward. The Governor also proposed a regulatory framework for corporate bond index derivatives and total return swaps, aligning with the Union Budget and aiding corporate bond market development.

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