Bond yields were trading flat after two days of break, but with positive bias on Tuesday tracing continued fall in global crude oil prices. Debt markets were closed on Friday for Independence Day and on Monday for a local holiday. This consolidation came after bonds rallied on Thursday to post their best week in nearly three months after media reports suggested of government considering cutting its planned debt borrowing over the next two months.
On the global front, U.S. Treasury debt prices fell on Monday after three days of gains as risk appetite returned following upbeat U.S. housing data and easing tensions in the Middle East and Ukraine. Meanwhile, brent crude edged up towards $102 a barrel on Tuesday, but stayed near a 14-month low reached in the previous session on weak demand and easing concerns over risks to supply.
Back home, the yields on new benchmark 8.40%- 2024 bond was trading 1 basis point higher at 8.53% from its previous close of 8.52% on Thursday.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.02% from its previous close of 8.03% on Thursday.
The Reserve Bank of India has announced the auction of 91 and 364 days Government of India Treasury Bills for notified amount of Rs 8,000 and Rs 5,000 crore respectively. The auction will be conducted on August 20, 2014 using 'Multiple Price Auction' method.
The Government of India has announced the sale (re-issue) of four dated securities for Rs 12,000 crore on August 22, 2014, including, (i) 8.27% Government Stock 2020 for a notified amount of Rs 2000 crore, (ii) 8.60% Government Stock 2028 for a notified amount of Rs 6000 crore, (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2000 crore and lastly (iv) 8.30% Government Stock 2042 for a notified amount of Rs 2000 crore respectively.
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