It has been a great rally for the Indian bonds, longest since 2003. The Central Bank’s monetary easing cycle has propelled the demand for sovereign notes, but 2017 might be the year of the turning tide. Strategists seem to agree with Citigroup seeing the rally fizzling out in second half of the year and Standard Chartered seeing the rising inflation as the trigger for bond losses in the second half. Societe Generale sees rising US yields as the biggest threat to the Indian bond rally.
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