Bond yields edged lower tailing lower brent crude prices in absence of any fresh triggers from Iraq turmoil. However, further uptrend of bonds was capped after recent rollback of some of the railway fare hikes, decision to delay increase gas prices by three months and extend the excise duty concessions on auto, consumer durables and capital goods by six months raised some doubts on the government's resolve on biting the 'bitter pill' of reforms. Besides, cautiousness ahead of debt sale worth Rs 15,000 crore also provided a ceiling to bonds’ rise.
On the global front, U.S. Treasuries prices rose on Wednesday after government data showed the U.S. economy took a much worse bruising in early 2014 than previously calculated. Meanwhile, brent crude dropped under $114 a barrel on Thursday as most of Iraq's oil output remained unaffected by the militant insurgency in the country, although worries over the conflict kept a floor under prices
Back home, the yields on new 10 year Government Stock 2023 were trading 1 basis point lower at 8.69% from its previous close of 8.70% on Wednesday.
The benchmark five-year interest rate swaps were trading 1 basis point higher at 7.93% from its previous close of 7.92% on Wednesday.
The Government of India announce the sale of Four dated securities for Rs 15,000 crore on June 27, 2014, including (i) 8.27% Government Stock 2020 for a notified amount of Rs 3000 crore, (ii) 8.83% Government Stock 2023 for a notified amount of Rs 7000 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 3000 crore.