Bond yields, reversing previous day gains, receded on Wednesday tracing the slide in brent crude. However, downside was limited on account of lack of significant appetite ahead of the Budget 15-16, which is scheduled to be presented on February 28, 2015 amidst concerns that the gross market borrowing of the government might be on the higher side.
On the global front, US Treasuries prices rose modestly on Wednesday following two days of testimony from Federal Reserve Chair Janet Yellen, which traders interpreted as suggesting the Fed could hike rates later than mid-year, and a solid five-year note auction. Meanwhile, brent crude fell towards $61 per barrel on Thursday after a sharp rally in the previous session, as bulging US crude stockpiles offset indicators of a recovery in demand.
Back home, the yields on new 10 year Government Stock 2023 were trading 1 basis point lower at 7.70% from its previous close of 7.71% on Wednesday.
The benchmark five-year interest rate swaps were trading 2 basis points lower at 6.91% from its previous close of 6.93% on Tuesday.
The Reserve Bank of India will conduct overnight repo variable rate auction for a notified amount of Rs 15,000 crore on February 26, 2015 (Thursday). 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.