Indian Government bonds traded lower tracking losses in US Treasuries - ICICI Bank : Treasury Research

Indian Government bonds traded lower today tracking losses in US Treasuries. Speculations of further tightening measures by the RBI also weighed on the Gilts. The yield on the benchmark 7.16% bond due 2023 ended the day at 8.18%, as against prior close of 8.09%.

India's call rate closed at 6.50% as against previous close of 7.10%. The RBI injected INR 504.75 bn (gross) into the banking system today, as against INR 398.40 bn (gross) yesterday.

US Treasuries are trading lower ahead of this week's auction of intermediate-dated debt worth USD 99 bn. Meanwhile, markets will closely watch US house price index and Richmond Fed manufacturing Index data due later today for further cues. The 10-year yield rose by 3bps , currently trading at 2.51%, compared to yesterday's close of 2.48%(17:30 IST)

Source : Equity Bulls

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