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This is an archive article published on March 12, 2013

Indian bonds may find support on foreign limit hike report

Immediate trigger for the market will be the January factory data with output expected to rise 1.2.

Indian federal bonds likely to be supported on report that the government may further raise foreign fund limit in government debt by 10 billion.

However,large gains are not expected as the move is not likely to be immediate,says a dealer.

The benchmark 10-year bond yield shut trading at 7.84 percent on Monday.

Immediate trigger for the market will be the January factory data with output expected to rise 1.2 percent as per a Reuters poll.

More crucial will be headline inflation on Thursday with a reading of 6.5 percent or less,cementing rate cut hopes for March 19.

 

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