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

Indian Government bonds ended lower today, extending Friday's losses, as a weaker Rupee raised concerns of further liquidity tightening measures by the RBI. Meanwhile, the cut-off yield for the 48-day Cash Management Bill worth INR 110 bn came at 11.894% today. The yield on the benchmark 7.16% bond due 2023 ended the day at 8.34% as against Friday's close of 8.26%.

India's call rate closed at 10.20%, as against Friday's close of 10.15%. The RBI injected INR 397.79 bn (gross) into the banking system today, as against INR 377.46 bn (gross) on Friday.

US Treasuries are trading little changed today following significant gains on Friday post the release of a weaker-than-expected new home sales data print. Meanwhile, markets await further cues from US durable goods orders and Dallas Fed manufacturing Index data prints due today. Going ahead, US government is scheduled to sell two-year notes worth USD 34 bn tomorrow, followed by an auction of five-year securities worth USD 35 bn and seven-year debt worth USD 29 bn later this week. The 10-year yield is currently trading at 2.82% as against Friday's close of 2.81%. (17:15 IST)

Source : Equity Bulls

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