Yield may slip to 7.80% in early trade on Feb 20: StanChart

The government cancelled Rs 12,000 crore bond auctions on Monday, lowering its market borrowing programme for the current financial year in its bid to rein in the deficit at 5.3 percent.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Travelcafe
moneycontrol.com

Home » News » Advertising

Feb 19, 2013, 06.45 PM | Source: CNBC-TV18

Yield may slip to 7.80% in early trade on Feb 20: StanChart

The government cancelled Rs 12,000 crore bond auctions on Monday, lowering its market borrowing programme for the current financial year in its bid to rein in the deficit at 5.3 percent.

Like this story, share it with millions of investors on M3

Yield may slip to 7.80% in early trade on Feb 20: StanChart

The government cancelled Rs 12,000 crore bond auctions on Monday, lowering its market borrowing programme for the current financial year in its bid to rein in the deficit at 5.3 percent.

Post Your Comments

Share Cancel

Agam Gupta (more)

MD & FI Trading, Standard Chartered Bank | Capital Expertise: Currencies

The government cancelled Rs 12,000 crore bond auctions on Monday, lowering its market borrowing programme for the current financial year in its bid to rein in deficit at 5.3 percent.

This move will lead to rally in the bond market on Wednesday and the bond yield may fall from 7.83 percent to 7.80 percent in early trade, Agam Gupta, Standard Chartered Bank said in an interview to CNBC-TV18.

"Given this move, I think there is a chance that the government may manage to show a better fiscal deficit number than 5.3 percent," he added.

Below is the edited transcript of Agam Gupta’s interview with CNBC-TV18.

Q: What do you expect the prices will go to or the yields will fall tomorrow when the market opens- if it opens?

A: Because the government has cancelled its last scheduled auction we will definitely rally tomorrow. The yield closed at 7.83 percent yesterday and we should hit 7.80 percent in early trade, which was the last significant level seen this year.

Q: How would you read this- the government canceling the current bond auction sighting that they have current enough cash and liquidity into the fiscal deficit number which could get announced in the Budget do you think there is a possibility of it being lower than 5.3 percent?

A: Yes. Borrowing has taken in the form of 5.3 percent number, so there is basically a chance that they manage to show a better number than 5.3 percent. Having said that, there will be other nuts and bolts which will go towards the fiscal deficit. So, just cancellation of auction will not really determine the fiscal deficit number, but there is a chance that they show it lower than 5.3 percent.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Yield may slip to 7.80% in early trade on Feb 20: StanChart

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login