Gold Silver Reports (GSR) – Indian bonds are likely to consolidate after posting strong gains on Tuesday. Bonds rallied after the central bank allowed lenders to spread their bond-trading losses, incurred in the past six months, over four quarters.
The yield on the 10-year bond fell 7 basis points to 7.33 percent. The focus will now turn to the RBI’s two-day monetary policy meeting. The RBI’s MPC will keep rates unchanged at 6 percent, according to all 26 economists.
Traders will also watch out for whether the central bank allows foreigners to up their investments in government bonds, a move which is likely to fuel a further rally in the market.
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Meanwhile, the rupee is expected to open at 64.97 per dollar having closed higher at 65.01 on Tuesday when bunched up inflows accumulated over five days hit the market. – Neal Bhai Reports (NBR) INDIA
