Reuters Market Eye – The Indian bond market will await an OMO announcement for next week as cash is expected to tighten further due to advance tax payments in mid-March.
Bonds, which have sold off after the higher-than-expected gross borrowing numbers for 2013/14, will await any comments from the government on the buyback schedule and papers to be bought.
Focus will now shift to the Reserve Bank of India (RBI) policy on March 19 and the factory, inflation data before that for cues.
USD/INR likely to trade in a 54-55.10 range next week, while the 10-year bond yield is likely to be in a 7.85-7.95 pct band.
A host of central banks including ECB, BOJ, BoE and RBA meet next week on policy.
KEY FACTORS/EVENTS TO WATCH
Tues: Feb Services PMI at 10.30 am
Wed: Money Supply data at 3.00 pm
Fri: Foreign exchange reserves data to be released at 5.00 pm
(Reporting by Subhadip Sircar)