MUMBAI: Indian government bond yields are seen edging lower in opening trade on Wednesday, as bargain buying may emerge after the steep rise in the previous session. The huge supply lined up for the coming weeks, however, is seen keeping upward pressure.
The 10-year benchmark bond yield is expected to open around 8.72 percent and move in a 8.70 to 8.80 percent band. On Tuesday, it touched a new four-month high of 8.78 percent and closed at 8.74 percent, 17 basis points up from Friday.
The mood has been hurt by the higher-than-expected cutoff yields and subdued demand at debut auction of 2012/13 on Tuesday, which forced underwriters to buy 11.95 billion rupees ($235 million) out of the 180 billion rupee issue.
The government is scheduled to raise 3.7 trillion rupees in April-September, of its projected gross borrowing target of 5.7 trillion for 2012/13.
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