Indian bond yields have edged lower on Friday tracking an overnight fall in US yields, though traders were eyeing a government decision to raise prices of fuel such as diesel and cooking gas.An EGoM on fuel will meet today and discuss on the oil ministry proposal for fuel price hike.On the global front, despite late-breaking news that Greece reached a deal on a five-year austerity plan, the prices of safe-haven US Treasuries rose on Thursday as euro zone worries drove investors out of riskier assets. It is reported that Greece had reached an austerity agreement, one of the steps it needed to take to receive aid from the European Union and the International Monetary Fund, partially reversed heavy selling in stocks.
The yields on 10-year benchmark, the 7.80% - 2021 was at 8.25%, off its day’s low of 8.23% hit in early trades, compared with 8.27% at its previous close. Dealers are awaiting sale of three dated securities for Rs 12,000 crore.
The benchmark five-year interest rate swaps was trading lower at 7.63% from 7.71% on Thursday.
Government of India has announced the sale of three dated securities for Rs 12,000 crore on June 24, 2011. Government have announced the sale (re-issue) of (i) “7.59 percent Government Stock 2016” for a notified amount of `3,000 crore (nominal), (ii) “8.08 percent Government Stock 2022” for a notified amount of `6,000 crore (nominal) and (iii) “8.28 percent Government Stock 2032” for a notified amount of `3,000 crore (nominal) through price based auctions. The auctions will be conducted using uniform price method. The Reserve Bank of India at Mumbai will conduct the auctions on June 24, 2011.
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