Gilts flat on low inflation
Gilts flat on low inflation Gilt yields remained steady on September 21, as inflation further declined at 3.32% on which traders took a pause to build up positions. Sentiments of the traders got affected although inflation was low continuously since last three weeks. With Rupee promising to be strong and inflation declining, traders paused on second consecutive day as they worried about the liquidity condition. Gilts remained flat on second consecutive day on payment of corporate taxes tightened the liquidity conditions causing the inter-bank call rate to cross 7% mark. The benchmark yield on the 10-year federal bond ended at 7.82%, unchanged from its close on Thursday and Wednesday.
