Gilts Pull Down Forward Premiums

After a gap of seven days, the benchmark 10-year paper tumbled again today, to a historic low of 0 7.72 per cent owing to ample liquidity in the system. Dealers said even the outflow of Rs 3,700 crore on account of the state loan auctions was not sufficient to stem the fall in yields. The fall in government paper yields pushed down forward premium rates as well. The six-month annualised dollar premium closed at 5.71 per cent, 12 basis point lower than Friday