Bond yields ebbed to a week’s low level on account of prevailing caution ahead of budget 2015-16, scheduled by the end of this week. However, the yields are expected to rise, owing to lack of significant appetite ahead of the Budget amidst concerns that the gross market borrowing of the government might be on the higher side.
On the global front, U.S. Treasury debt prices fell in seesaw trade on Friday, with benchmark 10-year yields rising for a third straight week, as investors shifted away from safe-haven assets after euro zone negotiators agreed to extend Greece's bailout. Meanwhile, oil prices dipped on worries about oversupply in North America, with brent futures testing support around $60 a barrel and US contracts hovering around $50.70.
Back home, the yields on new 10 year Government Stock 2023 fell were trading flat at week’s low level of 7.69% witnessed on Friday.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 6.89% from its previous close of 6.90% on Friday.
The Reserve Bank of India will conduct 7 day variable rate repo auction for a notified amount of Rs 15,000 crore on February 23, 2015. The auction will be conducted between 12.00 pm and 12.30 pm as per the revised guidelines on Term Repo Auctions issued on February 13, 2014.
The Reserve Bank of India has announced the auction of 91 and 182-day Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on February 25, 2015 using 'Multiple Price Auction' method.