The Indian government stated there were signs of high growth ahead in its manufacturing sector and that this turnaround of events has led to high demand in the sector and financing conditions have picked up its momentum. Finance secretary Subhash Chandra Garg tweeted on Monday “Crude is moving towards 60 dollars” and that the government bond yield has gone below 7%.
Spread for NBFCs/ HFCs over government bond is also narrowing. The latest data comes ahead of the Reserve Bank of India’s monetary policy meet that began on Monday. The bank is expected to cut interest rates again on June 6.