Bond trading range-bound; rupee weakens marginally

MUMBAI: Government bonds are trading range-bound ahead of another Rs 15,000 crore bond auction on Friday. RBI is to buy back securities worth Rs 6,000 crore from traders tomorrow.

Dealers expect action to remain range-bound in the coming days till the budget, when they they expect some clarity to emerge on the government's borrowing programme.

"Our estimate is that the 10-year would continue to trade rangebound in the 6.75% to 8% range," saya Aneesh Srivastava, chief investment officer at IDBI Fortis Life Insurance. "Let���s wait for cues about the borrowing programme from the budget. If its not too harsh, then we could see some trading opportunities," he added.

The yield on the 6.07% paper maturing in 2014, was steady at 6.67%. The benchmark 6.05% paper of 10 year duration had no trades.

The rupee weakened marginally on Wednesday on the dollar's gains versus the euro and a downswing in stocks. At 12.15 pm, the rupee was at 47.89 against the dollar, as compared to its Tuesday���s close of 47.86. It traded in a narrow 15 paisa range.