'G-sec yields to be range-bound this week'
However, they say the yield is likely to soften in the future. "The 10-year G-sec is likely to be range-bound in the near future and will take cue from the monetary policy action in the mid-quarter review by the central bank on December 18," Indian Overseas Bank general manager for treasury BS Keshava Murthy said.
Yield is a figure that shows the return investors get on a bond instrument.
Significantly, according to him, the government decision of not to have any additional borrowing in the current fiscal will not have any major impact on yield as the market has already factored in the same.
On Friday, Finance Minister P Chidambaram said the government will stick to its budgeted market borrowing target of Rs 5.7 lakh crore during the current fiscal and ruled out any more fresh borrowing.
In the first half, the fiscal deficit rose to Rs 3.37 lakh crore or 65.6 per cent of the budget estimate.
"We don't think at this moment we need to borrow anything more than what is indicated," the minister said after seeking parliamentary nod for additional of about Rs 30,800 crore of supplementary grants this fiscal.
However, Murthy says the recent RBI announcement to conduct more open market operations will have some easing impact on the yield.
The RBI said it will conduct an OMO of
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