The yields hit a new low abruptly on strength of the market rally today at 8.12% on the 10 year bond. I agree not liely to go further south without RBI action to cover this gap first. Equity markets exceptionally strong US open likely to be strong today, Europe next watch at noon. 

The yields will however not move up beyond 8.3% and you have to be betting on good liquidity remaining in the Indian Markets with RBI claiming the 10k crores OMO ($2 bln) and the CRR cut likely to finally come unstuck for banks keeping 29% (of NDTL) deposits with the RBI against a much lower requirement. 

Posted via email from The India Investment Post