The fair price for 10-year bond is close to 7.5 percent or maybe on south of that, said Ananth Narayan, market expert.
“Yesterday the market was expecting a softer print to come through given vegetable prices had noticeably come down even before the official data came out. So there was a fair amount of factoring of a soft CPI number coming through.”, said Narayan.
Narayan further added that the public sector banks were refraining from participating in the bond market. The banks have been consistent seller since the beginning of the year.