Bond yields edged higher as market-participants made room for Rs 15,000 crore debt sale later in the day. However, speculations that Reserve Bank of India (RBI) would unveil a new benchmark at a subsequent auction which was prompting traders to sell the existing benchmark paper, was restricting the further slide of yields.
On the global front, U.S. Treasuries prices rose on Thursday, with benchmark yields falling to their lowest in five weeks as investors scrambled for low-risk bonds on worries that problems involving Portugal's biggest listed bank may rekindle the region's financial woes. Meanwhile, Oil prices were heading for their third straight weekly loss on Friday as worries about supply disruptions in the Middle East and North Africa eased, although Brent stayed comfortably above $108 a barrel.
Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points higher at 8.80% from its previous close of 8.77% on Thursday.
The benchmark five-year interest rate swaps were trading 1 basis point higher at 7.86% from its previous close of 7.85% on Thursday.
The Government of India would announce the sale of four dated securities for Rs 15,000 crore on July 11, 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 2000 crore and lastly (iv) 8.30% Government Stock 2042 for a notified amount of Rs 3000 crore respectively.
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