G-sec yield seen range-bound for coming months due to lack of cues

Following RBI's guidance and a CRR cut, dealers expect government bond yields to settle into a range between 6.12 and 6.28 per cent over the next few months

Following the Reserve Bank of India’s forward guidance on liquidity and the interest rate trajectory, market participants expect a lack of significant trading cues in the bond market, which could lead the benchmark yield to remain range-bound, dealers said.

 

“Without any fresh cues, the market—which had been rallying almost unidirectionally over the last 2–3 months—is now likely to settle into a range. I believe over the next 2–3 days, a new range will be established as the market rebalances. Most likely, this range will be between 6.12 per cent on the lower side and 6.28 per cent on the