SIGMA signal is bearish; likely to remain Positive on IGBs

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.