Short-term yields rising: What’s in it for you?

Interest rates at the short end of the yield curve are rising in India due to a reduction in surplus system liquidity as the freedom over impounded cash pools, given to banks at the peak of the crisis last year, is withdrawn in phases. “The liquidity surplus has reduced with the CRR (cash reserve ratio) rollback and likely rising government cash balances,” said Anand Bagri, Head – domestic markets at RBL Bank. “This has put some pressure on