Equities traded in a range with a bearish bias, rupee stayed weak and well above 65 mark, bond yields consolidated at the higher end of the range 6.70-6.80%. While equities reacted very sharply to this announcement, bond yields fell by 5-7 basis, crude prices closed lower too. Bond yields continue to defy gravity and have stayed put at multi-year highs while equity markets have not completed the correction course. Bond yields have almost completely factored in the growth theory and the MPC reaction. Value buying may be the only driving factor in such a scenario with intense interest at the shorter end of the rate curve.

Source: dna March 05, 2018 00:09 UTC