Bond yields edged marginally lower as absence of any major scheduled debt sale this week comforted sentiment. Further, strong views that the central bank was close to reversing its tight monetary policy, given the global economic turbulence and slowing domestic growth, along with rise in yields on Friday, is likely to trigger some buying interest.
On the global front, US treasuries prices fell on Friday as investors unwound positions heading into the slow year-end period, with very low trading volumes exaggerating price moves. Meanwhile, Oil prices rose for a fifth straight day on Friday, on concerns about potential supply disruptions in Iran and Iraq and recent signs of a strengthening US economy.
The yields on 10-year benchmark 8.79% - 2021 bonds were trading lower at 8.35% from its previous close of 8.37%.
The benchmark five-year interest rate swaps was trading unchanged at 6.96% from its previous close of 6.95%.
The Reserve Bank of India has announced the auction of 91-day and 364-day Government of India Treasury Bills for notified amount of Rs 4,000 crore each. The auction will be conducted on December 28, 2011 using 'Multiple Price Auction' method.
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