DBS Sees Tactical Opportunity in Indian G-Secs After Yield Sell-Off
DBS economist Sherilyn Chew notes renewed geopolitical risk lifted Asian yields but sees Indian G-Secs as offering a tactical opportunity, arguing the sell-off is macro repricing with domestic fundamentals intact.
DBS Group Research economist Sherilyn Chew has flagged a tactical duration opportunity in Indian government securities (G-Secs) following a recent yield sell-off across Asia driven by renewed geopolitical risk.
Chew attributes the India sell-off primarily to macro repricing rather than a deterioration in domestic fundamentals. She points to structural demand and sound fundamentals as reasons the current move may be overdone, making G-Secs attractive for tactical positioning.
The note suggests that once geopolitical tensions ease, Indian bonds could see a reversal, offering short-term gains for duration plays.
Source: FXStreet Forex News