Indian Government Bonds are likely to remain under pressure - ICICI Bank : Treasury Research

The Indian Government bonds are likely to remain under pressure, tracking overnight losses in US Treasuries, ahead of the US FOMC meeting, due to conclude later today. Also, the auction of Gsecs worth INR 150 bn on Friday would further limit any gains. Gilts would track movements in the Rupee for further cues.

Meanwhile, in yesterday's trade, gilts edged lower, weighed by sharp depreciation in the Rupee coupled with a broadly cautious sentiment ahead of the Fed policy outcome. The old 10-year bond yield, currently at 7.46%, is expected to trade in the range of 7.43%-7.49% while the new 10-year benchmark, currently at 7.26%, is expected to trade in the band of 7.23%-7.29%

Source : Equity Bulls

Keywords