Incent bias to continue in India effects as the demand for the RBI policy is dampened | Einsmark news

By Dharamraj Dhutia Mumbai, June 11 (Reuters) -The Indian government bond yields may continue to see a mild increase in early transactions on Wednesday, as investor appetite has taken a knocking after the Reserve Bank of India (RBI) changed its monetary policy. The 10 -year -old return is expected to move between 6.27% and 6.33%, a trader at a private bank said, compared to the previous closure of 6,2946%, which was the highest since May 9. The five-year 6.75% 2029 yield ended at 5.9513% in the previous session. Since Friday, the yields of the effects have been on a rising tree stack, disappointed by the RBI’s shift to ‘neutral’ attitude, which indicates a limited scope for rate cutting, after it has a major reduction in 50-base point. “We thought that the market shows signs of recovery in the wake of the (the RBI) policy, but yesterday’s cut off from the government debt spoiled the party and we are back in the clumsy grip for which today should continue,” the trader said. Poor demand for government debt at an auction Tuesday has driven returns, which are inversely moving to prices, for the first time in this financial year above the 7% handle. This weighed the total market sentiment and denied the profits in bond prices made earlier in the day as a result of value purchases. According to a Reuters poll of economists, the central bank is likely to hold the rates for the rest of this financial year. Mid-to-long-term effects have risen despite the steepest reduction in the policy figures in five years, as traders have chosen to focus on leading the central bank that the relief cycle is over, with some benefiting the shorter end of the curve. The rates Indian Overnight Index Swap (OIS) are expected to be paid over the curve after ending higher on Tuesday. The one-year OIS rate ended at 5.54%, the two-year OIS rate INR2MIBROIS = CC closed at 5.51%and the liquid finished for five years at 5.73%. Important Indicators: ** Brent Ru futures 0.2% were lower at $ 66.75 a barrel after alleviating 0.3% in the previous session ** Ten years US Treasury yield at 4,4639%; Two years of return on 4.0139% ** The RBI to auction box-treasury accounts worth 190 billion rupees ($ 2.22 billion) ($ 1 = 85,5640 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Harikrishnan Nair)