Indian Government bonds end lower on Friday - ICICI Bank : Treasury Research

Indian Government bonds ended lower today tracking losses in US Treasuries. A higher than consensus cut-off yield for the benchmark 7.16% bond, coming in at 8.21% as against expectation of 8.15%, also weighed on the gilts. Meanwhile, bonds worth INR 9.47 bn were devolved in today's auction. The yield on the benchmark 7.16% bond due 2023 ended the day at 8.28%, as against prior close of 8.07%.

India's call rate closed at 7.0% as against previous close of 7.5%. The RBI injected INR 372.64 bn (gross) into the banking system today, as against INR 377.16 bn (gross) yesterday.

US Treasuries are trading lower today, extending yesterday's losses. The 10-year yield closed at 2.71% yesterday, having risen by 12 bps in intraday trade as better than expected US data prints weighed on the Treasuries. Meanwhile, markets will closely watch the non-farm payrolls data due today for cues on the timing of reduction in Fed's asset purchase program. The 10-year yield is currently trading at 2.75%, higher than yesterday's close of 2.71%. (17:30 IST)

Source : Equity Bulls

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