Bond yields, snapping two session’s uptrend, were trading lower tracking an overnight fall in crude oil prices and ahead of the election outcome next week, but trading was range-bound with traders watching the outcome of the Rs 16,000 crore debt sale later in the day for cues. Active buying by institutional buyers, such as insurance companies and pension funds, mainly supported bonds prices.
On the global front, the US bond market rallied and dropped on Thursday after the government sold $16 billion of new long bonds at unexpectedly high yields. Meanwhile, Brent crude held steady above $108 per barrel on Friday supported by renewed tension in Ukraine and continued limited supply from Libya, but still on track for a second weekly loss.
Back home, the yields on new 10 year Government Stock 2023 were trading 1 basis point lower at 8.75% from its previous close of 8.76% on Thursday.
The benchmark five-year interest rate swaps was trading steady at its previous close of 8.27%.
The Government of India announce the sale of Four dated securities for Rs 16,000 crore on May 9, 2014, including (i) 7.80% Government Stock 2020 for a notified amount of Rs 4,000 crore, (ii) 8.83% Government Stock 2023 for a notified amount of Rs 7,000 crore, (iii) 8.32% Government Stock 2032 for a notified amount of Rs 2,000 crore and lastly (iv) 8.30% Government Stock 2042 for a notified amount of Rs 3,000 crore on May 9, 2014.