Trendline In Horizontal Mode

Yields on government securities will rule flat this week.

Despite comfortable liquidity with the banking system, trading will be rangebound as on Monday the Reserve Bank of India (RBI) will conduct on-tap sale of the 6.40 per cent 2013 state development loan and there will be no trading on May 14 and 16 on account of bank holidays.

The aggregate amount of the state loans is Rs 6,747 crore, with an option to retain excess subscription up to 30 per cent. This makes the total auction size Rs 8,771 crore.

The on-tap sale of state loans, however, is not expected to make any dent on the liquidity in the market.

 

This is underscored by the fact that at last Friday