Indian Government bonds extends losses on Wednesday - ICICI Bank : Treasury Research

Indian Government bonds ended lower today, extending yesterday's losses. A sharply weaker Rupee weighed on the Gilts. Further, auction of dated securities worth INR 170 bn on Friday is also likely to weigh on the Gilts and add to the losses. The yield on the benchmark 7.16% bond due 2023 ended the day at 8.96% as against yesterday's close of 8.79%.

India's call rate closed at 10.25%, as against yesterday's close of 10.20%. The RBI injected INR 390.74 bn (gross) into the banking system today, as against INR 397.79 bn yesterday.

US Treasuries are trading lower today amidst better than expected US data prints released yesterday. Further, some profit booking also weighed on the Treasuries. Meanwhile, markets will closely watch US pending home sales data due today for further cues. Going ahead, auction of five-year securities worth USD 35 bn is scheduled today. The 10-year yield is currently trading at 2.75% as against yesterday's close of 2.71%. (17:30 IST)

Source : Equity Bulls

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