Indian Government bonds ended higher - ICICI Bank : Treasury Research

Indian Government bonds ended higher today taking positive cues from Chief Economic Advisor Raghuram Rajan's comments yesterday. Meanwhile, today's auction was devolved to the tune of INR 13.3 bn, higher than last Friday's devolvement of INR 10.48 bn. Meanwhile, markets remained cautious ahead of the RBI policy meeting due next week. The yield on the benchmark 7.16% bond due 2023 ended the day at 8.16%, as against prior close of 8.19%.

India's call rate closed at 6.50% as against previous close of 6.30%. The RBI injected INR 224.46 bn (gross) into the banking system today, as against INR 279.38 bn (gross) yesterday.

US Treasuries are trading little changed today amidst continued speculation about the timing of scaling back of Fed's asset purchase program following mixed US data prints yesterday. Meanwhile, markets await University of Michigan Confidence Index for further cues. The 10-year yield is currently trading at 2.57%, flat around yesterday's close. (17:00 IST)

Source : Equity Bulls

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