Expert's take: 10-year yields seen in 8.25%-8.40% range
The money market liquidity situation is exactly as desired from an inflation management stance, with the markets in a deficit mode of around Rs 60,000 crore.
Updated:
Harihar Krishnamoorthy
Head, Treasury, FirstRand Bank
The money market liquidity situation is exactly as desired from an inflation management stance, with the markets in a deficit mode of around Rs 60,000 crore.
With the week seeing the start of the reporting fortnight, demand for money should be robust and call rates would be well above the repo rate and would trade in the range of 7.30-7.60%, with CBLO rates and repo rates trading a shade lower.
With the official stance clearly focused on inflation control, 10-year yields should trade in 8.25-8.40% range, with a slight upward bias, as markets speculate on the timing of further rate hikes. Markets await the announcement of the securities for the auction this week and results of auction for interest rate direction.
Softer international commodity prices as well as decelerating food inflation should provide some temporary calm, though higher local interest rates and strong demand-side pressures would keep inflationary expectations high.
Head, Treasury, FirstRand Bank
The money market liquidity situation is exactly as desired from an inflation management stance, with the markets in a deficit mode of around Rs 60,000 crore.
With the week seeing the start of the reporting fortnight, demand for money should be robust and call rates would be well above the repo rate and would trade in the range of 7.30-7.60%, with CBLO rates and repo rates trading a shade lower.
With the official stance clearly focused on inflation control, 10-year yields should trade in 8.25-8.40% range, with a slight upward bias, as markets speculate on the timing of further rate hikes. Markets await the announcement of the securities for the auction this week and results of auction for interest rate direction.
Softer international commodity prices as well as decelerating food inflation should provide some temporary calm, though higher local interest rates and strong demand-side pressures would keep inflationary expectations high.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
