Buying needs to broad-based for yields to stabilise at lower levels.The geopolitical risks and rising crude prices could be a reason, probably. The core inflation continues to remain higher and could well be a thorn in overall inflation dynamics. On a year-over-year basis, the trade deficit has nearly doubled from $47 billion in FY17 to $87 billion in FY18. Indian rupee continues to remain stable with any short-term or intraday weakness attracting exporter selling. For the week ahead, any move above 7.50% should see some buying interest in benchmark bonds as the message in the April MPC is clearly in favour of an extended pause.

Source: dna April 16, 2018 00:11 UTC