Indian Government bonds continue to remain under pressure - ICICI Bank : Treasury Research

Indian government bonds continue to remain under pressure with short term rates seeing sharp intraday spikes. The RBI yesterday auctioned short term cash management bills at yields over 11%. Given the fact that last week's dated securities auction was partially devolved, the auction due today will be watched closely for rate signals. The Chief Economic Adviser commented that he expected bond yields to come down in some time and also said that the measures taken recently were intended to be a substitute for an actual hike in interest rates. The benchmark 7.16% 2023 bond had traded higher yesterday with the yield coming down to 8.19% with prior close at 8.42%. The benchmark is currently trading at around 8.15%.

Source : Equity Bulls

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