Indian Government bonds trade flat - ICICI Bank : Treasury Research

Indian Government bonds traded flat in the absence of fresh domestic cues. On the one hand expectations of rate cut by the RBI going ahead after it provided a less cautious policy guidance in the June meeting provided support, while on the other hand persistent weakness in the Rupee coupled with the dated securities auction worth INR 150 bn this Friday capped the upside. The old benchmark 8.15% 2022 bond yield closed at 7.47%, compared to yesterday's close of 7.48% while the new 7.16% 2023 ended the day at 7.27%, as against yesterday's close of 7.28%.

India's call rate closed at 7.25% as against previous close of 7.28%. The RBI injected INR 603.40 bn (gross) into the banking system today, as against INR 668.45 bn (gross) yesterday.

S Treasuries are trading little changed as investors remain on the sidelines ahead the FOMC policy decision due later in the day. Markets would closely watch Fed Chairman Bernanke's post policy press conference and the Central Banks growth and inflation projections for further cues. Meanwhile, Treasuries had closed flat yesterday albeit a choppy trade. The 10-year yield is currently trading at 2.18% unchanged from previous close. (17:30 IST)

Source : Equity Bulls

Keywords