Interest rates are headed up: Dalton Capital Advisors

Which way we expect bond deals to behave after the budget? Do you see interest rates heading sharper, pretty much on the fast track?

I think interest rates are headed up whether it will spike up tomorrow we don’t know. But all indications are if the requirement is substantially higher than what it was last year I think we will see some immediate effect on the bond markets with interest rates yield spiking up.

But even otherwise, I think interest rates are on the way up north. May be in the next credit policy statement is when I think probably the next big move might happen. But tomorrow - unless of course the borrowing is going to be much lower than the 450,000 odd crores last year - we expect that interest rates might actually start moving up.