Bond yields, extending previous session’s southbound journey, edged lower on continued buying activities by select class of investors. The yields edged sharply lower after finance ministry said it was working on a proposal for the new government to rein in the fiscal deficit in its first budget.
Meanwhile, the cut off rate for Rs 16,000 crore debt sale held by the government was unveiled. While, cut off rate for 7,000 crore of the benchmark paper was fixed at Rs 101.01, the same was fixed at Rs 95.68 for 7.80% Government Stock, 2020 sold for notified amount of Rs 4000 crore. The cut off rate for 8.32% Government Stock,2032 worth Rs 3000 crore, and 8.30% Government Stock, 2042 worth Rs 2000 crore was fixed at Rs 94.68 and Rs 93.87 respectively
On the global front, U.S. Treasuries prices edged lower on Thursday after stronger economic data on U.S. existing home sales and factory activity lifted sentiment, while larger-than-expected weekly jobless claims failed to spur safe-haven bids. Meanwhile, Brent crude held steady above $110 a barrel on Friday, set for a second straight week of gains, supported by conflicts in Libya and Ukraine as well as by positive economic data in the world's top two oil consumers, the United States and China.
Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points lower at 8.68% from its previous close of 8.71% on Thursday.
The benchmark five-year interest rate swaps were trading 1 basis point higher at 8.18% from its previous close of 8.17% on Thursday.
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