Indian debt markets are likely to remain volatile in the near term as liquidity conditions, inflation, crude oil prices and global interest-rate expectations influence bond yields.
While strong institutional demand, manageable fiscal conditions and stable macroeconomic fundamentals support the market, the policy stance of the Reserve Bank of India (RBI) and the US Federal Reserve will remain critical.
August shaped by liquidity, inflation and global risks
Debt markets in August were influenced by domestic liquidity developments, inflation concerns and global rate expectations. While FCNR-linked inflows supported liquidity, the premature closure of the facility,…