Indian bonds have not participated in the global bond sell-off of the last three months
While bond investors the world over have had a torrid six months, those who invested in Indian bonds are laughing all the way to the bank. As rates have normalised the world over, they’ve had to put up with none of the mark-to-market losses that bond portfolios the world over have suffered. In fact, the yield on the Indian 10-year has barely moved from about 7 percent to 7.38 percent since the Union Budget on February 1.
Contrast this with the US 10-year that has moved from 1.7 percent to 3.57 percent with brief detour to 4 percent. Or the German bund (10-year) that rose from 0.03 percent to 1.83 percent or the Japanese 10-year that moved into positive territory to 0.22 percent and the outperformance becomes stark.