Bond yields were treading water on Tuesday as prevailing caution following comments from OPEC that oil prices may have found a floor. However, yields uptick was restricted on hopes of further rate cut after Chief Economic Advisor Arvind Subramanian, appreciating RBI's efforts in lowering inflation, underscored that the central bank may further ease the interest rates as improvement on price front has provided room for monetary easing.
On the global front, US treasury debt prices slipped on Monday ahead of $90 billion of fixed rate supply and a Federal Reserve meeting later this week in a session marked by low volumes as a major winter storm hit in the New York area. Meanwhile, Brent crude oil prices held above $48 on Tuesday following comments from OPEC that prices may have found a floor.
Back home, the yields on new 10 year Government Stock 2023 was trading steady at Friday’s close of 7.70%
The benchmark five-year interest rate swaps were trading 2 basis points lower at 6.77% from its previous close of 6.79% on Friday.
The Reserve Bank of India has announced the auction of 91 and 182 days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6000 crore respectively. The auction will be conducted on January 28, 2015 using 'Multiple Price Auction' method.
Government of India announce the sale of Four dated securities for Rs 13,000 crore on January 30, 2015, 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 5000 crore, (iii) 8.24% Government Stock 2033 for a notified amount of Rs 2000 crore and lastly (iv) 8.17% Government Stock 2044 for a notified amount of Rs 3,000 crore.
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