Indian Government bonds ended higher on stronger Rupee - ICICI Bank : Treasury Research

Indian Government bonds ended higher today on the back of a stronger Rupee. RBI's measures to meet the Dollar demand of PSU oil marketing companies released yesterday aided the Gilts. Further, some value buying also supported the Gilts. Meanwhile, markets await OMO purchase of dated securities worth INR 80 bn tomorrow for further cues. The yield on the benchmark 7.16% bond due 2023 ended the day at 8.77% as against yesterday's close of 8.96%.

India's call rate closed at 10.25%, flat around yesterday's close. The RBI injected INR 399.84 bn (gross) into the banking system today, as against INR 390.74 bn yesterday.

US Treasuries are trading slightly lower today, extending yesterday's losses. However, lower than expected US pending home sales data released yesterday weighed on the speculations of an early reduction in Fed's asset purchase program and gave some support to the Treasuries. Meanwhile, traders remained on the sidelines ahead of the second reading of US Q2 GDP print due today. The 10-year yield is currently trading at 2.79% as against yesterday's close of 2.77%. (17:15 IST)

Source : Equity Bulls

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