In signs of imminent revival of overseas interest in government securities, an auction for investment limits in such bonds was over-subscribed today by FIIs with bids worth a record USD 10.4 billion pouring in.
Ananth Narayan, co-head of Wholesale Bank, South Asia, Standard Chartered Bank believes yields are likely to remain in the range of 7.85 to 8 percent. He also expects the RBI to continue open market operations (OMOs) in April.
The government today cancelled Rs 12,000 crore bond auctions, lowering its market borrowing programme for the current financial year in its bid to contain the fiscal deficit at 5.3 per cent.
Gustavo Bagattini of RBC Capital Markets spoke to CNBC-TV18 about what is happening at the global markets.
Gustavo Bagattini, European economist at RBC Capital Markets tells CNBC-TV18 that the outlook on Greece pulling through is quite a mixed bag. “While general sentiment is positive, some also question the PSI (private sector involvement) deal in Greece,” he says.
Gold futures trade at 1-month high ahead of ECB, bond auctions
European markets opened on a quiet note today. Investors weighed in the recent economic data from the eurozone. The key triggers for tomorrow are the sovereign bond auctions for Italy and Spain and the ECBs statement on the interest rate.