Gilt yields rose over fresh supplies

Gilt yields rose as concerns over fresh supplies and the outcome of the FOMC meet kept the traders at a bay. Early in the week, rally in the US Treasury prices due to weak US economic data propelled gilts.

As a part of the regular market borrowing program, RBI would raise Rs 6,000 crore by selling 9.39% GOI 2011 paper and Rs 3,000 crore through 7.59% GOI 2016 paper.

The yield on 7.59% GOI 2106 ended 3 bps higher at 8.28% from 8.25% previously.The result of the FOMC meet and auction details would influence the near-term movement in gilts. Oil prices and market movements across the globe would be closely monitored.
Credence Analytics India Ltd