The MPC stayed status quo as growth outlook improved and is expected to take a pause in the near term.  With supply outstripping demand in the bond markets, further liquidity measures like OMOs will determine the path of yields going forward.  The Governor also proposed a regulatory framework for corporate bond index derivatives and total return swaps, aligning with the Union Budget and aiding corporate bond market development.

Ritesh Taksali, Chief Investment Officer, Edelweiss Life Insurance