Barring oil bonds and the Unit Trust of India bonds issued by the Government of India, trading is expected to remain lacklustre with levels likely to hover rangebound.
Floating stock of good quality papers is limited as there are hardly any fresh issues. Quality issues such as those of the Housing Development Finance Corporation, the Exim Bank, the Power Finance Corporation etc are trading at very fine spreads to comparable government securities.
Top-rated corporates had managed to raise funds with finely priced bonds which do not offer good yield differential to the investor in the secondary market.