| The rupee's movement in the foreign exchange market could also influence the trend "" a decline in the rupee against the dollar could mean receding liquidity, and therefore, pricier trades. |
| If the rupee treads higher, gilt prices may move up too and the yield on the ten-year benchmark gilt, the 7.38 per cent 2015, could slip under 6.50 per cent. |
| Dealers said if foreign institutional investors take profit and make the dollar costlier by converting their rupee earnings, the sentiment in the gilts mart might take a beating. |
| The Reserve Bank of India has, however, said at various times that even if foreign fund inflows slowed or remittances increase, the excess liquidity that had been absorbed by it through open market operations could be pumped back into the banking system. |
| Recap: After remaining rangebound for a major part of last week, government security prices rallied during the weekend after reverse repos attracted subscriptions of more than Rs 30,000 crore. |
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