The ten-year bond yields at 7.8% are likely factoring in four rate hikes of 25 basis points each post the hawkish comments, Ashutosh Khajuria, Federal Bank's Executive Director, said, adding that this may not materialise.

The Rupee hit its 13-month low and bonds to fall sharply on hawkish comments from the monetary policy committee (MPC).

“The MPC minutes looked quite hawkish vis-à-vis the earlier interpretation post the monetary policy, which was quite dovish and the expectation was of no rate hikes in the financial year 2018-2019,” he said.

Khajuria believes that the decline in bond prices or the surge in bond yields has been overdone.

First Published:Apr 20, 2018 2:01 PM IST