Markets are expected to witness volatility amid fluctuations in US yields and sustained geopolitical uncertainties.
Short-end of the curve appears more lucrative. Yields could rise as GST payments could see tighter liquidity conditions with other factors like election spending also playing a role.
The 10-year gsec should hover within the 7.10% to 7.25% range.
Over the short-term, short duration bond funds and corporate bond funds are preferred options. Dynamic bond funds as also longer duration funds are preferable for investors willing to take duration bets