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Bond yields inch lower after release of govt’s market borrowing calendar for April-September

24 Mar 2015 Evaluate

Bond yields inched lower on Tuesday as the government's first-half borrowing plan was on expected lines. The government will borrow Rs 3.60 lakh crore in the first half of the fiscal year that begins in April. This amounts to 66.7 per cent of the targetted gross market borrowing of Rs 6 lakh crore in 2015-16. It also announced measures to smoothen the management of government debt including framing of guidelines to reduce the pressure of repayment of loans raised earlier.

On the global front, US treasuries rose on Monday amidst investor’s anxiety over negotiations between Greece and its creditors over the terms of 240 billion euro bailout for the cash strapped nation. Meanwhile, Oil prices fell in Asia today following disappointing manufacturing data out of top energy consumer China, and as dealers await fresh US economic figures.

Back home, the yields on 10 year Government Stock was trading 2 basis points lower at 7.74% from its previous close of 7.76% on Monday.

The benchmark five-year interest rate swaps were trading 1 basis point lower at 6.99% from its previous close of 7.00% on Monday.

The Reserve Bank of India will conduct overnight variable rate reverse repo auction for a notified amount of Rs 20,000 crore today (March 24, 2015, Tuesday). The auction will be conducted between 4.00 pm and 4.30 pm as per the revised guidelines on Term Repo Auctions issued on February 13, 2014

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