Bonds: 10-year government securities seen at 8.35-8.40%

Arvind Konar Head-Fixed Income Almondz Global Securities

During the week, the 10-year benchmark G-Sec 8.79%, 2021 may trade in the range of 8.35-8.40% and yield may not fall much on the likelihood that the government may issue a new 10-year benchmark soon.

Market will also remain wary due to uncertainty over whether the RBI will conduct OMO this week on the backdrop of outflow of advance tax payments next week causing liquidity tightness. Last week RBI did not conduct any OMO on the back of easing liquidity.

Call money rates may remain firm on Monday as banks will continue to borrow to meet reserve requirements for the current reporting fortnight and may trade in the range of 8.00-8.25%.