Bond yields were trading lower after the outcome of Rs 14,000 crore bond auction. The government set cut off price of Rs 102.63 or implicit yield at cut off price of 7.65% for 8.27% Government Stock 2020 for a notified amount of Rs 2000 crore, cut off price of Rs 107.12 or implicit yield at cut off price of 7.73% for 8.60% Government Stock, 2028 for a notified amount of Rs 6000 crore; cut off price of 104.95 or implicit yield at cut off price of 7.73% for 8.24% Government Stock, 2033 for a notified amount of Rs 3000 crore and cut off price of Rs 105.88 or implicit yield at cut off price of 7.76% for 8.30% Government Stock, 2040 for a notified amount of Rs 3000 crore.
On the global front, U.S. Treasuries pared yield declines on Thursday but remained slightly lower after the European Central Bank announced more bond purchases than expected in a move that boosts global liquidity and is expected to support U.S. and European bonds. Meanwhile, Oil prices jumped on Friday as news of the death of Saudi Arabia's King Abdullah added to uncertainty in energy markets already facing some of the biggest shifts in decades.
Back home, the yields on new 10 year Government Stock 2023 was trading 1 basis point lower at 7.70% from its previous close of 7.71% on Thursday.
The benchmark five-year interest rate swaps were trading 9 basis points lower at 6.82% from its previous close of 6.91% on Thursday.
The Government of India have announced the sale (re-issue) of the Government Stock through auctions to be held on January 23, 2015, including (i) 8.27 per cent GS 2020 for a notified amount of Rs 2000 crore, (ii) 8.60 per cent GS 2028 for a notified amount of Rs 6000 crore, (iii) 8.24 per cent GS 2033for a notified amount of Rs 3000 crore and lastly (iv) 8.30 per cent GS 2040 for a notified amount of Rs 3000 crore.
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