The 10-year benchmark government bond may trade in the range of 6-6.25 percent if terminal repo rate moves lower to 5.50 percent, believes Amit Tripathi, Chief Investment Officer-Fixed Income Investments at Reliance Nippon Life Asset Management.
The benchmark 10-year bond rose 2 basis points to 6.52 percent on August 14. Indian markets were closed on July 15 for a public holiday.
In a freewheeling chat with Moneycontrol, Tripathi said 10-year will settle in the 6-6.25 percent range if the liquidity situation remains in the comfortable zone.
The RBI had delivered a rate cut of 25 bps points on August 2. Reliance Nippon expects further easing of 25-50 bps during this financial year, mostly in the Jan-Mar quarter of FY18.
