India’s Long Bonds Have Become a Crowded Trade, Edelweiss Warns
- Edelweiss held 25% of assets in 30-year government bonds
- RBI will engage in a “shallow rate-cut cycle,” Edelweiss
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An Indian bond fund manager says a rally in the nation’s 30-year bonds has gone too far, as traders hyped up expectations for policy rate cuts and increased purchases by foreign funds.
The trade has become crowded as investors eager to ride a paradigm shift in the nation’s rates bet the 30-year debt is the best vehicle to do so, according to Dhawal Dalal, who oversees 820 billion rupees ($10 billion) of assets as the head of fixed income at Edelweiss Asset Management Ltd.