- Wealth PMS
Gilt yields have gone berserk – up to 5.75% today. ET says its because the government is borrowing 50,000 cr..
But come on. 50,000 cr. is 1.25% of GDP. This is not a reason for bonds to lose nearly 4 rupees – or 3% – of their price. There has to be some other explanation, my idea being profit booking in general.
Let’s see – prices come first, reasons come later. I still see rates at 4% later this year, so I’m holding.