Government Securities

10-year yield to be targeted at 6%

With the uncertainty over the Gulf War over, gilt market players will be targeting a yield of six per cent for the benchmark 10-year security.

Trading sentiment will be positive even as the market will be scrutinising the inflation numbers.

If inflation is under leash traders will be tempted to take fresh positions. Owing to year-end valuation considerations, players will not allow prices to slip much.

At the same time, as the financial year is coming to a close the upside will also be limited.

The benchmark 9.81 per cent 10-year gilt finished last week 29 basis points lower at a yield of 6.21 per cent as against Monday