Bond yields although recovered from one week low scaled in early trade was still trading lower after reports suggested of government considering raising its foreign investment limits on government bonds by $5 billion to $35 billion, earmarking the amount for longer-term investors such as pension funds and sovereign wealth funds.
On the global front, US treasury prices rose on Wednesday after foreigners bid heavily for American debt during a government auction of $21 billion of benchmark 10 year notes. Meanwhile, Oil prices inched higher in Asia today but the gains were capped as dealers fretted over an oversupplied global market after US crude reserves once again swelled to a record high.
Back home, the yields on new 10 year Government Stock 2023 was trading 2 basis points lower at 7.74% from its previous close of 7.76% on Wednesday.
The benchmark five-year interest rate swaps was trading 2 basis points lower at 7.08% from its previous close of 7.10% on Wednesday.
The Reserve Bank of India will conduct overnight variable rate repo auction for a notified amount of Rs 15,000 crore on March 12, 2015, Thursday. The auction will be conducted between 3.45 pm and 4.15 pm as per the revised guidelines on Term Repo Auctions issued on February 13, 2014.
The Reserve Bank of India will conduct 28 day Term Repo auction for a notified amount of Rs 30,000 crore on March 13, 2015, (Friday). 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.