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Bond yields witness profit-booking; traders eye composition of new govt

26 May 2014 Evaluate

Bond yields were trading higher on account of profit-taking as traders kept on sidelines, keenly awaiting the composition of the new government later on Monday and comments from Narendra Modi, who will be sworn in as prime minister in a ceremony, which is to be held later in the day.

On the global front, U.S. Treasuries prices rose on Friday on uncertainty ahead of Sunday's European Union and Ukraine elections, which overshadowed stronger-than-expected U.S. housing data and spurred safe-haven bids. Meanwhile, brent crude edged down towards $110 a barrel on Monday, dipping further from last week's two-and-a-half month high as worries over Ukraine eased slightly after its presidential election.

Back home, the yields on new 10 year Government Stock 2023 were trading 2 basis points higher at 8.66% from its previous close of 8.64% on Friday.

The benchmark five-year interest rate swaps were trading 1 basis point higher at 8.15% from its previous close of 8.14% on Friday.

The Reserve Bank of India has announced the auction of 364 and 91 days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 9000 crore to be conducted on May 28, 2014 using 'Multiple Price Auction' method.

Additionally, eleven State Governments have offered to sell 4/10 year securities by way of auction for an aggregate amount of Rs 10015 crore on May 27, 2014

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