Monday, February 24, 2014

10Y Yield shooting higher

The 10Y bond seems to have broken its short term trading range of 8.65-8.80 and is currently trading at 8.85. There have been some calls for a 9.20+ levels there.

Technically, as long as we do not close below 8.83, the upside in yields is pretty much open. Come April and a front loaded borrowing calendar (INR 80000 Cr of redemptions in the first 45 days), 10Y yield is looking to stabilize at much higher levels than at present.


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