Bond yields edged higher as retail inflation although rose for third successive month in February, but remained well within RBI’s comfort zone. However, further rise in yields was limited on expectation that the government could raise foreign investment limits for government bonds. On the macro-front, February consumer price index (CPI) rose to 5.37 percent versus 5.11 percent in the previous month, while industry output data (IIP) for January came in at 2.6 percent, higher than the 1.7% in December
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 5 basis points higher at 7.77% from its previous close of 7.72% on Thursday
The benchmark five-year interest rate swaps was trading 2 basis points higher at 7.09% from its previous close of 7.07% on Thursday.
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.