Rally to continue at least till auction
The government securities market is expected to be bullish till Wednesday, October 16, when the Reserve Bank of India (RBI) will hold the auction.
With fears of open market operation (OMO) sales by the RBI receding after the auction announcement, and abundant liquidity, prices of medium-tenor gilts are seen going up by 15-20 paise.
Janak Desai, treasurer at IDBI Bank, told Reuters liquidity is expected to drive yields by two to three basis points.
