Thursday, 03 May 2012 17:07
MUMBAI: Indian federal bond yields ended down on Thursday for a second consecutive session on rising speculation the Reserve Bank of India will support markets via open market operations or bond purchases in secondary markets.
Bonds also benefitted from a safe-haven bid as global risk aversion increased, and as the rupee and equities fell on Thursday given concerns about India's economic and fiscal challenges, as well as foreign outflows.
Tight liquidity -- with repo borrowings above 1 trillion rupees for seven sessions in a row -- has sparked talk of secondary market intervention from the RBI, and now, speculation of more direct action via OMOs.
The 10-year benchmark 2021 bonds ended 1 basis point lower at 8.62 percent, after falling as much as 5 basis points during the session.
The 9.15 percent 2024 bonds fell 4 basis points to 8.65 percent. The debt was widely traded as the tranche will be included in Friday's ...
171.59
