Indian bond fund managers anticipate long-term interest rate decline due to improved economic conditions and PM Modi's fiscal deficit commitment.

India's leading bond fund managers, such as Bandhan AMC, Kotak Mahindra Asset Management Co., and DSP Investment Managers Pvt., anticipate long-term interest rate decline in India, signaling a new era for the $1.3 trillion government debt market. Improved economic conditions and a commitment to reduce fiscal deficit from Prime Minister Narendra Modi's latest budget are expected to lead to a structural decline in policy rates. In response, most debt funds are investing in bonds with maturities of 30 years or more in anticipation of a bull market.

July 29, 2024
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