Money Market Heads Up: Bond Yield May Stay In A Tight Range Of 7.70-7.76%

Gold Silver Reports (NBR) – Money Market Heads Up: Bond Yield May Stay In A Tight Range Of 7.70-7.76% – Investor appetite for sovereign debt will be tested again as the government plans to sell Rs 12,000 crore of debt today. It is important to recall here that underwriters had to rescue the short bond on offer in the last three auctions.

Edelweiss Securities expects a weak demand after the underwriting commissions for the auction came in higher. For today, yield may stay in a tight range of 7.70-7.76 percent. The selloff of last two days has almost entirely wiped out the gains from RBI’s debt purchase announcement.

For the rupee, implied opening from forwards suggest a stronger opening around 67.16 a dollar as most Asian markets are trading strong. The closely tracked South Korean won is up 0.3 percent. However, higher crude oil prices are likely to keep the gains in the rupee in check. The pair may trade in a range of 67-67.50 a dollar in the session. – Neal Bhai Reports (NBR)

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