Rising bond yields are prompting investors to avoid long-duration debt, and they might switch their fixed-income portfolio instead to liquid and ultra-shortterm funds after benchmark yields hardened on Thursday.
"Given the uncertainty surrounding inflation, fiscal deficit and GST collections, the bond markets could be choppy in the near term," said Vikram Dalal, managing director, Synergee Capital. "Investors would do well to stick to liquid and ultra-short-term bond funds until ..