Both the OMO sale and weekly auction went off well with robust all round demand. Bond yields ended nearly flat with decent volumes on all days. Late Friday evening, Reserve Bank of India (RBI) announced yet another OMO sale to be conducted on August 10. Ideally, an OMO sale news should drive yields higher, however, muted credit growth and expectations of rate-cut may cap any sharp rise in yields. Domestic bond yields should stay confined to a 6.35 to 6.45 range.

Source: dna July 24, 2017 02:03 UTC