Indian Government bonds traded higher - ICICI Bank : Treasury Research

Indian Government bonds traded higher today tracking gains in US Treasuries. Fed Chairman Bernanke's dovish comments aided global risk sentiment and eased concerns over possible FII debt outflows. However, gains were limited as RBI Governor Subbarao's comments that inflation numbers remain high, lowered expectations of a rate cut in near future. The benchmark 7.16% 2023 ended the day at 7.47%, as against yesterday's close of 7.52%.

India's call rate closed at 7.30% as against previous close of 6.80%. The RBI injected INR 597.25 bn (gross) into the banking system today, as against INR 566.85 bn (gross) yesterday.

US Treasuries are trading marginally higher today as FOMC minutes and Fed Chairman Bernanke's speech yesterday indicated that Fed will continue with its asset purchase program in the near future. Meanwhile, markets await US initial jobless claims data due later today for further cues on QE tapering by the Fed. US will sell 30-year bonds worth USD 13 bn today. The 10-year yield is currently trading at 2.57% lower than previous close of 2.62%.(17:30 IST)

Source : Equity Bulls

Keywords