SBI Buys Sovereign as Yield Spread at 5-Month Low

SBI Buys Sovereign as Yield Spread at 5-Month Low

Pankaj Nangia/Bloomberg

A burst of policy changes by Prime Minister Manmohan Singh in the past month to curb the budget deficit and counter a slowing economy have increased prospects of interest rate cuts in coming months, making sovereign notes attractive, according to Reliance Capital Asset Management Ltd. and Quantum Asset Management Co.