Outlook : Government Securities

Auction cut-off to drive yields

Gilts will be rangebound despite comfortable liquidity. Players will seek a direction from the cut-off in the Rs 7,000-crore auction, which is scheduled some time between October 3 and 8. As such, there are no fresh triggers for prices to perk up.

The upside/ downside will be restricted to 25 paise. Not much trading is expected on Monday, which happens to be the half-yearly closing for banks. Banks will value their trading books at Saturday