Bond yields edged lower as crude oil prices fell amid broad dollar strength, with little impact seen after the release of all time low Feb WPI data. Contrary to the trend witnessed in retail inflation numbers, the annual rate of inflation, based on monthly wholesale price index (WPI) continued to show disinflationary trend by ebbing to all time low level of -2.06% in February as compared to -0.39% witnessed in January and 5.03% during the corresponding month of the previous year.
On the global front, US treasury debt prices fell on Friday after a week of strong gains, shrugging off a brief upturn on surprisingly weak and bond friendly American producer price data. Meanwhile, brent crude futures dipped below $58 a barrel on Tuesday as the dollar hit multi year highs and the oil market remained buoyant hobbled by oversupply and weak demand.
Back home, the yields on new 10 year Government Stock 2023 was trading 2 basis points lower at 7.78% from its previous close of 7.80% on Friday.
The benchmark five-year interest rate swaps was trading steady at Friday’s close of 7.14%.
The Reserve Bank of India will conduct 21 day Term Repo auction for a notified amount of Rs. 30,000 crore on March 16, 2015, (Monday). 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 364 and 91 day Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 8,000 crore respectively. The auction will be conducted on March 18, 2015 using 'Multiple Price Auction' method.