Holiday mood may keep traders away from gilts this week

Holiday mood may keep traders away from gilts this week
Taking cues from the last week's trading and the ongoing year-end celebrations, market experts have been expecting a dull trading week for the gilts with investors looking less likely taking fresh positions amid holiday mood.

"I do not expect much movement in gilt yields, as this week marks the beginning of the month and the quarter," said Parthasarathi Mukherjee, president, treasury and international banking, Axis Bank, as per a media report.

Last week, on Friday, the yield on 10-year benchmark 8.15 per cent 2022 ended almost unchanged at 8.11 per cent. Also the worries over government's additional borrowings eased after RBI announced plans to auction treasury bills worth Rs 140,000 crore in the period from January-March.

Going ahead, in 2013, investors will take cues from the RBI's monetary policy, said experts adding that any rate cut in January-March period will ease the yields.

Besides, experts also said that Indian currency may gain value against US dollar due to month-end factor while inflows by foreign institutional investors expected to continue in the new-year, too.

Read more about: gilt, markets
Story first published: Monday, December 31, 2012, 15:30 [IST]
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