New 10-year bond at seven-year low: The cut-off for the new 10-year bond at 6.97% (compared to incumbent 7.10%) signals an underlying positive trend in the market. The market is likely to stay in a narrow range in this week, in the background of Urjit Patel assuming the office of the Reserve Bank of India (RBI) governor. The next major trigger for the market will be the inflation data for August, which is due next week. The announcement of the auction of a new 10-year security led to a marginal positive bias in the bond market. The Indian central bank’s measures to strengthen the corporate bond market anchored bond yields—especially for the AAA-rated segments.

Source: Mint September 08, 2016 12:33 UTC