The Report shows the increased global volatility encapsulated by sudden swings in commodity prices, based on cues from China, where economic slowdown clashes with strong government stimulus. On the other side of Asia, tensions are brewing in West Asia. The US has started its rate cuts, but the pace remains in question. Closer home, the monsoons caused some selective sluggishness in indicators in Q2 – whether this will continue in Q3 would determine the fate of FY25. In any case, the government retains reins to increase expenditure at any moment. The same also means that supply of G-secs is limited, pulling yields down. This also is likely to keep corporate spreads thin, helping crowd in corporate bond issuances.
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