Bond yields fell on Monday due to value buying among traders. The yield on the 10-year benchmark bond ended down 5 basis points compared with previous close at 7.90 per cent.
"Yields fell due to value buying among traders. There are redemptions expected this month due to which there will be replacement demand for bonds," said Debendra Kumar Dash, assistant vice president (money market), DCB Bank.
Earlier this month the yield on the 10-year benchmark bond had climbed up to 8 per cent. According to bond traders the central bank was not comfortable with yields rising sharply.
"Yields fell due to value buying among traders. There are redemptions expected this month due to which there will be replacement demand for bonds," said Debendra Kumar Dash, assistant vice president (money market), DCB Bank.
Earlier this month the yield on the 10-year benchmark bond had climbed up to 8 per cent. According to bond traders the central bank was not comfortable with yields rising sharply.
Meanwhile, the rupee ended weak on Monday. The rupee ended at 63.72 compared with previous close of 63.52 per dollar. "There were dollar buying by state-run banks possibly on behalf of corporates and debt payments. The bias for the rupee continues to be towards weakening," said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
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