Bond yields edged lower on bargain-hunting after Thursday's steep decline in bond prices. Besides, many traders preferred to be on the sidelines and await the 150-billion-rupee debt sale results for further direction. In last trading session, the bond prices dipped after Reserve Bank of India's unexpected debt sale announcement. The central bank will sell Rs 100 billion worth of bonds on Monday via open market operations.
On the global front, U.S. Treasuries yields were little changed on Thursday after traders took profits a day after prices rose on views that the Federal Reserve would keep interest rates lower for longer. Meanwhile, Brent crude futures fell to $89 a barrel on Friday, close to a four-year low, as increase supply and more grim economic news stretched a months-long slump in oil prices.
Back home, the yields on new benchmark 8.40%- 2024 bonds were trading 1 basis point lower at 8.46% from its previous close of 8.47% on Thursday.
The benchmark five-year interest rate swaps were trading 1 basis point higher at 7.71% from its previous close of 7.70% on Thursday.
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.
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