With swelling bank deposits due to demonetisation and likelihood of bank deposit rates remaining subdued will prompt savers move their money from banks to other financial assets like mutual funds and insurance, said Avnish Jain, Head-Fixed Income, Canara Robeco Mutual Fund.
Expected trading range for the day for 10-year is seen at 7.4350-7.4550 percent, says Mohan Shenoi of Kotak Mahindra Bank.
10-year is expected to trade today in a range of 7.65- 7.70 percent, says Mohan Shenoi of Kotak Mahindra Bank.
Both equities and money market have seen a bit of sell-off over the past few days, however, the bond market has relatively been stable. Jayesh Mehta of Bank of America feels the outlook remains constructive going ahead.
In an interview to CNBC-TV18, Vivek Rajpal, Rate Strategist, Nomura shares his views on bond yields, rate cut and rupee. He expects the 10-year to be in the range of 7.70-7.85 percent in the near-term. He believes rupee is likely to remain range bound going ahead.
He attributed the decline to falling oil prices, which in turn affects industries such as fracking. Oil's slide also "determines currency movements," setting off a chain reaction.
In an interview with CNBC-TV18, Bank of America MD and country treasurer Jayesh Mehta and Mecklai Financial Services CEO Jamal Mecklai spoke about the triggers for the money market from hereon.
The dramatic buying and big swing in rates coincided with a swift downdraft in stocks and was blamed on a combination of factors.
In the long-term money will continue to come in India but in the short-term, some profit booking is inevitable, says Brijen Puri.
Vivek Rajpal expects bond market to remain range bound with the 10-year varying from 8.45-8.65 percent.
The range for the 10-year is seen between 8.55-8.67 percent, says Ajay Manglunia of Edelweiss.
Ahead of the auction tomorrow, the range for the 10-year is seen between 8.78-8.82 percent, says Mohan Shenoi of Kotak Mahindra Bank.
According to Agam Gupta, rupee is likely to remain in a narrow range for sometime as RBI can now control inflows and outflows of the currency.
Next couple of days are crucial from bond market's perspective. We expect 10-year to trade between 9-9.10% in the near-term, says Dhawal Dalal of Balckrock.
Ashish Parthasarthy expects to see an improvement on the current account deficit(CAD) front as well as on the Balance of Payments (BoP).
The 10-year Treasury yield averaged 2.64 percent and the average investment grade cash spread has been 154 basis points above Treasurys, while the average high yield spread has been 462 basis points, said Adrian Miller, director of fixed income strategy at GMP Securities.
The relief was on the back of the H2FY14 borrowing calendar that was announced post market hours on Monday and was in line with the expectations.
The government will borrow Rs 2.35 lakh crore from the market in the second half of the fiscal year starting in October it said, but did not detail how the Rs 50,000 crore bond switch will happen.
The partially convertible rupee was trading at 61.12/13 per dollar at 9:08 a.m., after hitting a session low of 61.16, not far from an all-time low of 61.21 hit on July 8.
"The currency maybe wobbly, but unfortunately we all know that the currency at least in the case of India has really not been helpful in propelling the export segment in any way," Pan said in an interview to CNBC-TV18.
In an interview to CNBC-TV18, Jayesh Mehta, managing director and country treasurer at Bank of America Merrill Lynch says he expects 10-year yield to touch 7.90 percent. "I think 7.90 percent is a range. It may go upto 7.85 percent, but I think 7.90 percent is where it will stabilise," he adds.
In an interview to CNBC-TV18, Agam Gupta, Standard Chartered Bank says, chances of a 50 basis point rate cut are very high. If the central bank cuts rate by 50 bps, he says, the new 10-year paper could go towards 7.75%.
In an interview to CNBC-TV18, Dhawal Dalal, DSP BlackRock and A Prasanna, chief economist of I-Sec, speak about the bond market and give their outlook going forward.
In an interview to CNBC-TV18, Manish Wadhwan, managing director and head-interest rates, HSBC speaks about the bond markets and gives his outlook going forward.
In an interview with CNBC-TV18, Vikas Gupta of JP Morgan says, he sees benchmark yield in a range of 8.20-8.60% for the next one month.