Indian mutual funds will swap their government bond holdings for shorter-dated treasury bills since the hawkish commentary from most major central banks has ruled out rate cuts in the near future, fund managers said.
"After the focus on inflation from the U.S. and the Indian central bank, rate cuts are out of the picture for the time being and in such a scenario, three-month T-bills is the safest bet," said Raju Sharma, head of fixed income at IDBI Mutual Fund.
