Ovetii Comment as Indian Bonds Continue to Advance

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 17, 2007 -- According to sources, reports by Ovetii predicted that sales of so-called stabilization debt may decline as the need to absorb money from banks was reduced after the regulator curbed inflows of overseas money.
According to a source close to Ovetii, a senior Ovetii analyst commented that with the restrictions on inflows, there would be little much excess liquidity in the banking system in the coming months as banks may scale back the supply of debt under the stabilization plan, in an attempt to ease bond yields.

The yield on the benchmark 7.99 percent note due July 2017 fell 7 basis points to 7.82 percent in Mumbai, according to the central bank's trading system, the biggest decline since the five days ended July 20. The price rose 0.49, or 49 paise per 100 rupee face value, to 101.10. A basis point is 0.01 percentage point.

The 10-year bond yield may fall as low as 7.6 percent by the end of this year. The rumoured average estimate of eight of Ovetii’s analysts is that the rate will end the year at 7.85 percent.

Ovetii