Short-term bonds, which have been out of favour because of tight liquidity conditions for the last 10 months, are unlikely to gain popularity anytime soon even if likely government expenditure eases the ongoing cash crunch in the banking system, ANZ Bank's Head of Trading Nitin Agarwal said. He believes that investors will demand a premium to bear the risk of tight liquidity conditions making a comeback, especially since they do not foresee big rate cuts ahead.
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