First View
Quantum MF Fixed Income Fund Manager Sneha Pandey on RBI Policy
This story was originally published at 14:31 IST on 5 June 2026
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NEW DELHI – Sneha Pandey, Fund Manager - Fixed Income, Quantum Mutual Fund, said the following on the Reserve Bank of India's second bi-monthly monetary policy statement for 2026-27 (Apr-Mar), detailed Friday:
The RBI's June 2026 policy pause was entirely consistent with our expectations, underscoring its preference for administrative measures over rate hikes for currency management. Yet, in the run-up to this meeting, bond markets had priced in an aggressive pessimism, behaving as though the Monetary Policy Committee was already behind the curve — in our view, an overreaction.
Ahead of the announcement Friday, yields had already softened on the back of the government's tax proposals, and the measures unveiled drove a further 5–7 basis points decline in the 10-year benchmark. Crucially, the expansion of the Fully Accessible Route-bond base opens the door for foreign inflows across longer tenors, while domestic institutions such as banks, insurers, and pension funds remain underinvested. With the RBI likely to purchase close to INR 5 trillion of gilts via OMOs in the second half of FY27, the demand-supply dynamics for g-secs look materially improved.
Taken together, this backdrop suggests that policy tightening risks have receded, and the bond market is positioned for stability rather than stress — a constructive setup for investors navigating volatile times. End
Compiled by Priyasmita Dutta
Filed by Akul Nishant Akhoury
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