Halister News

(Bloomberg) -- Sovereign rupee bonds are likely to trade in a narrow range in the coming weeks given the absence of any major triggers, says Harish Agarwal, Mumbai-based fixed-income trader at the local unit of South African lender FirstRand.

• “After the last rate cut, market is not factoring in any rate reductions by the RBI as inflation came in higher than expectations,” he says
• Even global events, including geopolitical tensions, aren’t having much impact on India
• Sees 10-year bond yield in 6.50%-6.60% range for the next three months
• Market trading cautiously after the last rate cut and demand from foreign investors likely to be subdued as limits are almost exhausted: Agarwal
• Expect a very tight-range market till the next policy decision on Oct. 4
• Yield on 6.79% bonds due May 2027 little changed at 6.57% Tuesday; rose 3bps Monday to 6.57%, which was the highest close since June 6 
• Yield fell by 1bp earlier during the day as bonds were slightly supported after the government Monday announced sale of 90b rupees of new bonds maturing in 2031 on Friday, he says

To contact the reporter on this story: Kartik Goyal in Mumbai at kgoyal@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui