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Bond yields inch up ahead of Rs 15,000 crore debt auction

27 Jun 2014 Evaluate

Bond yields edged higher in the range-bound trade on Friday, as traders made room for Rs 15,000 crore debt sale later in the session, though further upside of yields was capped on account of overnight fall of US treasury yields and brent crude.

On the global front, US Treasuries yields dropped on Thursday as traders eyeing a possible slowing of American economic growth drove up prices for a fourth straight day. Meanwhile, Brent crude steadied above $113 a barrel on Friday, holding on to most of previous session's losses and heading for the biggest weekly loss since March as investors unwound their positions on reduced concerns over exports from strife-torn Iraq.

Back home, the yields on new 10 year Government Stock 2023 were trading 1 basis point higher at 8.74% from its previous close of 8.73% on Thursday.

The benchmark five-year interest rate swaps were trading 1 basis point lower at 7.93% from its previous close of 7.94% on Thursday.

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.

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