The fresh round of U.S. tariffs has moved beyond trade policy into the realm of geopolitics, according to Prashant Pimple, Chief Investment Officer – Fixed Income at Baroda BNP Paribas Mutual Fund.
He noted that while additional duties on India may weigh on growth, the slowdown could paradoxically turn out to be positive for bond investors, as softer growth tends to support debt markets.
However, he cautioned that fiscal pressures, higher state borrowing, and supply-demand imbalances are still pushing yields higher in the near term. Edited Excerpts –
French 10-year bond yield tops Italy levels after PM falls
France faces financial instability as its borrowing costs surpass Italy’s, fueled by investor concerns after Prime Minister Bayrou’s removal. The yield on 10-year French bonds briefly rose to 3.48 percent. Bayrou’s austerity budget, aimed at reducing France’s 3.3 trillion euro debt, triggered the confidence vote. Fitch’s upcoming…
