Gilt yields high on low appetite
Gilt yields high on low appetite Gilt yields rose on September 25, as investors expected the central bank to absorb excess liquidity through auction of government securities under the market stabilization scheme (MSS). Low appetite for gilt was on account of auction `5.87% G Sec 2010` under MSS and `5.48% Government Stock 2009` worth Rs 50 billion each. The sentiments were influenced on expectations that Reserve Bank of India would come out with some measures in the monetary policy in a bid to curb Rupee appreciation. It is noteworthy that there was surplus liquidity in the banking system even though direct tax collection rose 40% up to September 21, after the corporate paid taxes. The benchmark 10-year bond yield ended high at 7.91%, as against 7.86% on previous working day.
