Indian Debt Fund Managers Adjust Strategies Amid Volatile Bond Yields and Market Pressures

Indian debt fund managers are adopting tactical strategies amid volatile bond yields and elevated supply pressures. Despite the Reserve Bank of India's rate cuts and liquidity measures, bond yields remain range-bound but volatile, influenced by record state borrowing, foreign investor selling, and a surprise exclusion of Indian bonds from a global index. Fund managers favor shorter-duration corporate bonds, state bonds with higher spreads, and dynamic duration approaches, while the RBI is expected to support bond prices amid cautious investor sentiment and global uncertainties.