Gilt yields remain flat on liquidity conditions
Gilt yields remain flat on liquidity conditions
Gilt yields remained steady on Sep. 17, 2007 on tight liquidity conditions.
On concerns of tight liquidity conditions in the debt market with the corporates paying for their taxes worth Rs 350 million, inter-bank call rates remained high.
In addition to that, due to US slowdown caused by the defaulters of mortgage crises, the Federal Reserve is expected to cut the interest rate. This may result in possible inflow of investment in the debt market.
But with the slowdown in industrial growth, low inflation, the Reserve Bank of India may cut the cash reserve ratio to increase the growth rate in low performing sectors.
The prevailing scenario moved the sentiments of the traders who may change the structure of portfolio investment to gain more returns from assets.
The benchmark yield on the federal 10-year bond ended at 7.86%, unchanged from Friday`s close.
