ETMarkets Fund Manager Talk: Higher bond yields likely to drive incremental inflows into duration strategy-based funds: 360 ONE Asset

economictimes.indiatimes.com:

With interest rates nearing a peak in the hike cycle, and bond prices at attractive valuations, accrual and duration strategy-based funds are likely to see incremental inflows, according to 360 ONE Asset.
“Accrual and duration strategy-based funds both are likely to have better incremental inflows due to historically high yields, leading to attractive entry points across tenures due to a flatter yield curve,” says Milan Mody, fund manager — fixed income, 360 ONE Asset. Edited excerpts from an interview with ETMarkets:

After the latest CPI inflation print in the US, there are growing expectations that the Fed will remain on pause mode. Do you also think so?
Our perspective is that the Fed’s rate hike cycle has concluded and is likely to remain on hold with a range of 5.25-5.50%. Currently, the Fed futures are indicating a pause until May’24 and rate cuts post that.

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Do you believe that monetary tightening globally and in India is on its last legs?
Advanced economies are still dealing with the effects of the pandemic-era’s accommodative fiscal policies. We believe that global monetary tightening is almost complete, and it might affect economic growth because there’s a delay between when these policies change and when we see their impact on the economy.

At present, economic data in the US look surprisingly strong, but in Europe, Purchasing Managers’ Index (PMI) and inflation rates have started to moderate. China’s economic growth is a bit sluggish too, and the country is expected