Standard Chartered notes as follows:
- Our Indian government bond (IGB) positioning indicator (SIGMA) for March dropped to -1.21 from -0.75 in February, providing a bearish signal for duration in April.
- On our scale, +5.00 indicates the maximum position of accumulated net buying by active investors in the past six months. Domestic mutual funds and foreign portfolio investors remained net buyers of IGBs in March.
- Foreign banks and primary dealers remained net sellers, but the amount of selling declined substantially from February.
- We maintain a Positive outlook on IGBs on expectations of further monetary easing in 2015.
The material has been provided by InstaForex Company – www.instaforex.com