Indian Bonds are Likely to Consolidate After Posting Strong Gains

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.

Read More : Stocks in Asia Trade Mixed; Treasuries Steady

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

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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