Bond yields are diverging, with short-term rates falling due to liquidity while long-term rates rise, signaling the end of the current rate-cut cycle. Institutions are locking in long-term funds, anticipating future rate increases, as the market prices in a potential shift to higher rates.
End of rate cuts, ample liquidity: Why short-end yields above 7% look attractive, says Devang Shah
Fixed income investors should recalibrate strategies as RBI nears the end of its rate-cut cycle. With comfortable liquidity and low rate hike probability, short-term AAA
February 16, 2026