“This view is based on an assumption of continuity in policy framework and direction from both the government and RBI. More to the point from a here-and-now perspective, the overnight rate is now more firmly anchored to the repo rate, and the yield curve is also decently positive. Bond valuations are attractive, and yields have decreased by only 25–30 basis points (bps) from last year’s highs. During this time, we have had bond index inclusion and strong inflows from foreign investors, a strong commitment to fiscal consolidation in the interim budget, lower than expected government bond supply announcement, a continued fall in local core inflation, and RBI easing its liquidity stance visibly,” Choudhary said.