Bond yields trade lower with strong volumes on Tuesday

Bond yields were trading lower with strong volumes after a long week on Tuesday tailing the dip of US yields after Friday's jobs data hinted that the Federal Reserve could delay raising interest rates. Money markets were shut for trade Thursday to Monday for local holidays.

                                                                                                                                                                                                                                                                                                                                                                                                       Bond yields were trading lower with strong volumes after a long week on Tuesday tailing the dip of US yields after Friday's jobs data hinted that the Federal Reserve could delay raising interest rates. Money markets were shut for trade Thursday to Monday for local holidays.

On the global front, U.S. Treasuries yields edged lower on Monday on weak European economic data and as the modest growth in U.S. hourly earnings seen in Friday's jobs report drove views that the Federal Reserve could delay raising interest rates. Meanwhile, brent crude futures slipped further away from $93 a barrel on Tuesday and partially erased the previous session's gains, with concerns about abundant supply outweighing the positive boost to prices from the U.S. dollar's recent weakness.

Back home, the yields on new benchmark 8.40%- 2024 bonds were trading 3 basis points lower at 8.45% from its previous close of 8.48% on Monday.

The benchmark five-year interest rate swaps were trading 8 basis points lower at 7.78% from its previous close of 7.86% on Monday.

The Government of India announced the sale of four dated securities for 15,000 crore on October 10, 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 7000 crore, (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2000 crore and lastly (iv) 9.23% Government Stock 2043 for a notified amount of Rs 3000 crore.

The Reserve Bank of India has announced the auction of 182 and 91 days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 9000 crore respectively. The auction will be conducted on October 8, 2014 using 'Multiple Price Auction' method.
                                                                                                                                                                                                                On the global front, U.S. Treasuries yields edged lower on Monday on weak European economic data and as the modest growth in U.S. hourly earnings seen in Friday's jobs report drove views that the Federal Reserve could delay raising interest rates. Meanwhile, brent crude futures slipped further away from $93 a barrel on Tuesday and partially erased the previous session's gains, with concerns about abundant supply outweighing the positive boost to prices from the U.S. dollar's recent weakness.

Back home, the yields on new benchmark 8.40%- 2024 bonds were trading 3 basis points lower at 8.45% from its previous close of 8.48% on Monday.
The benchmark five-year interest rate swaps were trading 8 basis points lower at 7.78% from its previous close of 7.86% on Monday.

The Government of India announced the sale of four dated securities for 15,000 crore on October 10, 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 7000 crore, (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2000 crore and lastly (iv) 9.23% Government Stock 2043 for a notified amount of Rs 3000 crore.

The Reserve Bank of India has announced the auction of 182 and 91 days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 9000 crore respectively. The auction will be conducted on October 8, 2014 using 'Multiple Price Auction' method.