Friday, Oct 07, 2022

Indian bond yields fall further

Some traders hope Chidambaram's comments will influence RBI's approach at its next policy review.

* India’s benchmark 10-year bond yield falls 2 bps to 8.20 percent as debt prices resume their previous day rally after finance minister P. Chidambaram said interest rates remain high,added looking at fiscal consolidation steps.

* Some traders hope Chidambaram’s comments will influence RBI’s approach at its next policy review in September after the central bank has kept the repo rate on hold for two consecutive meetings because of inflationary pressures.

* The RBI could also buy more bonds via open market operations,though that may be less likely,especially in the near term,given liquidity conditions have improved.

* The central bank is due to decide on its dividend payout to the government on Thursday,which should add liquidity into the system.

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* Traders expect the 10-year bond to move in a range of 8.15-8.20 percent.

* India will sell 150 billion rupees ($2.7 billion) of bonds on Friday,the central bank said after market hours on Monday’

First published on: 07-08-2012 at 01:57:42 pm
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