Bond yields were mostly flat with positive bias on Friday, as a debt auction scheduled later in the day tapered off traders appetite, with the absence of debt buyback also weighing on sentiment. The market was closed on Thursday for a national holiday. On the global front, U.S. Treasury debt prices rose on Thursday, and five-year note yields dipped to the lowest level since at least the 1960s, a day after the Federal Reserve said it will likely hold interest rates near zero at least through late 2014. Meanwhile, brent crude rose above $111 on Friday on hopes of steady demand growth as positive data from the United States boosted expectations of economic expansion gaining momentum in the world's top oil consumer.
The yields on 10-year benchmark 8.79% - 2021 bonds were trading tad higher at 8.33% from its previous close of 8.32% on Wednesday.
The benchmark five-year interest rate swaps were trading at 7.33% from Wednesday's close of 7.30%.
The Government of India have announced the sale (re-issue) of (i) “8.19 percent Government Stock 2020” for a notified amount of Rs 4,000 crore (nominal) through price based auction, (ii) “9.15 percent Government Stock 2024” for a notified amount of Rs 6,000 crore (nominal) through price based auction and (iii) “8.97 percent Government Stock 2030” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method on January 27, 2012 (Friday).
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