 "Hopes of normal monsoon set to provide comfort to bond street")
The monsoon outlook for this year will be released by the India Meteorological Department (IMD) this week and the broad expectation is that it would be a normal monsoon, due to which it will give some comfort to the bond market.
It is expected that the yield on the 10-year bond will fall by a few basis points from current level this week. “If the monsoon is expected to be normal then the yield on the 10-year benchmark bond will fall towards 7.75 per cent,” said the head of fixed income of an insurance company.
The yield on the 10-year bond ended at 7.79 per cent on Friday compared with previous close of 7.80 per cent.
“The rupee may trade in the range of 62.20 to 62.50 this week,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
Friday the rupee ended at 62.37 compared with previous close of 62.30 per dollar.
It is expected that the yield on the 10-year bond will fall by a few basis points from current level this week. “If the monsoon is expected to be normal then the yield on the 10-year benchmark bond will fall towards 7.75 per cent,” said the head of fixed income of an insurance company.
The yield on the 10-year bond ended at 7.79 per cent on Friday compared with previous close of 7.80 per cent.
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Meanwhile, the rupee is seen trading range bound this week because it is expected that even if it appreciates due to dollar flows in domestic market, the Reserve Bank of India (RBI) will intervene through state-run banks and mop up dollar flows in a bid to boost its reserves.
“The rupee may trade in the range of 62.20 to 62.50 this week,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
Friday the rupee ended at 62.37 compared with previous close of 62.30 per dollar.