Bond yields were trading water on Friday as traders awaited the results of the Rs 14,000 crore debt sale later in the day where the government would sell the new 10-year paper, i.e. 8.40% Government Stock 2024 for a notified amount of Rs 9000 crore. The fall in global crude oil prices and some bargain buying was seen helping the new 10-year paper after yields rise to 8 bps on Wednesday.
On the global front, most U.S. Treasuries were steady on Thursday, overcoming earlier price losses, as investors sought out lower risk debt for month-end rebalancing. Meanwhile, brent crude held near $106 a barrel on Friday as ample supply continued to drag on prices a day after the benchmark posted its worst monthly performance since April 2013.
Back home, the yield on soon to be benchmark 8.40%- 2024 bond were trading steady at its Thursday’s close of 8.50%.
The yields on existing benchmark 2023, 10-year Government Stock were trading 1 basis point higher at 8.73% from its previous close of 8.72% on Thursday.
The benchmark five-year interest rate swaps were trading 2 basis points higher at 7.91% from its previous close of 7.89% on Thursday.
The Governments of India have announced the sale (re-issue) of three dated securities for Rs 14,000 crore on August 1, 2014, including (i) 8.27% Government Stock 2020 for a notified amount of Rs 3000 crore); (ii) 8.40% Government Stock 2024 for a notified amount of Rs 9000 crore and (iii) 9.23% Government Stock 2043 for a notified amount of Rs 2000 crore
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