Gilt Yields Edge Down, Rupee Roars Ahead

Yields on gilts and corporate bonds came off by around five and ten basis points, respectively, last week.

Good liquidity, successful closure of the on-tap sale of state development loans, and a cut in the prices of petroleum products helped the yields to soften.

The Reserve Bank of India governor Bimal Jalan said on Thursday the central bank did not propose to cut the key repo rate now, although the money market was flush with funds.