Yield curve nudges down amidst heavy buying appetite

By First Capital Research
The secondary market yield curve nudged low broadly across all maturities, as buying interest emerged strongly ahead of the T-bond auction scheduled on 
May 13. 
Amidst active investor interest, on the short end, 15.12.2026 traded between 10.60 percent and 10.50 percent whilst 01.05.2027 and 15.09.2027 closed transactions between 10.90 percent-10.75 percent. 

Meanwhile, multiple maturities under the 2028 tenure, namely 15.03.2028, 01.05.2028, 01.07.2028, 01.09.2028 and 15.12.2028, hovered between 11.50 percent and 11.20 percent during the day. 
Further, the buying sentiment extended to the belly end of the curve with 15.09.2029 registering trades at 11.72 percent. 
Moreover, 15.05.2030 traded in the range of 12.07 percent and 11.90 percent and 01.10.2032 recorded business between 12.19 percent and 12.14 percent amidst moderate volumes. On the external side, the rupee remained broadly steady against the US dollar closing at Rs.298.6.