DBS Group Research economist Sherilyn Chew notes that renewed geopolitical risk has lifted yields across Asia, but sees Indian G-Secs as offering a tactical opportunity. She argues the India sell-off is mainly macro repricing, with domestic fundamentals and structural demand intact. Foreign participation remains supportive, and DBS views the 10-year sector as attractive for adding duration once risk sentiment stabilises.<\/p>\n
Indian G-Secs repricing seen as transient<\/p>\n
“Renewed geopolitical risk has pushed yields higher across the region, but we would differentiate between markets where the repricing presents a more compelling entry and those where it reinforces existing concerns.”<\/p>\n
“For India, the sell-off looks largely driven by a broad-based macro repricing rather than any deterioration in domestic fundamentals.”<\/p>\n
“With supportive structural demand and ongoing foreign participation still supportive, the spike is likely transient and should fade once risk sentiment stabilises.”<\/p>\n
“As such, we view this repricing episode as a tactical opportunity to add duration exposure in the 10-year sector, at more attractive entry levels.”<\/p>\n