Bond yields were treading water for yet another session as dealers remained cautious ahead of weekly bond sale, which is scheduled to take place in the later part of the session and also well ahead of monetary policy review next week. Street is widely expected to ease rates further after unexpectedly doing so outside the monetary policy preview in January.
On the global front, U.S. Treasuries fell on Thursday, with long-term yields backing away from record lows as U.S. jobless claims figures shrank to a 15-year low and investors made room for $64 billion of new government debt. Meanwhile, Oil prices dipped on Friday following slight gains in the previous session and analysts said the outlook remained weak, with production high and producers reducing operating costs to adjust to lower export revenues.
Back home, the yields on new 10 year Government Stock 2023 was trading flat at Thursday’s close of 7.71%.
The benchmark five-year interest rate swaps were trading 3 basis points lower at 6.79% from its previous close of 7.02% on Thursday.
The 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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