Goldman Sachs favours going long on 30-year govt bond

Goldman Sachs recommends going long on India's 30-year government bond, advising entry at 7.34 percent yield with a target of 6.90 percent and a stop loss at 7.65 percent. The bank cites the benchmark bond's inclusion under the Fully Accessible Route (FAR) to broaden foreign investor demand, and the ongoing shift of household savings toward retirement and long-term products such as pension funds and insurance. Goldman also anticipates around 15 billion dollars in inflows if Indian bonds are included in Bloomberg's Global Aggregate Index, with a possible mid-year announcement.