Bond yields were treading water for second consecutive session on Thursday amid lack of fresh triggers, with yields moving in a tight range in absence of any big development. The yields also have been flat on prevailing caution ahead of Friday’s debt sale, which includes sale of new 8 year bond.
On the global front, US treasuries yields rose on Wednesday as a selloff in German bunds caused investors to reduce their holding in other low risk government debt, propelling US 30 year yields to their highest levels in five weeks. Meanwhile, oil prices diverged on Wednesday with brent closing up on renewed fighting in Yemen, while US crude fell after weekly rise in inventories despite slower production.
Back home, the yields on 10 year Government Stock was trading steady at Wednesday’s close of 7.75%
The benchmark five year swap rate was trading 1 basis point lower at 7.07% from its previous close of 7.08% on Wednesday.
The Government of India have announced the sale (re-issue) of the Government Stock through auctions to be held on April 24, 2015, including (i) New Security maturing on December 15, 2023 for a notified amount of Rs 3000 crore, (ii) 8.15 per cent GS 2026 for a notified amount of Rs 7000 crore, (iii) 8.24 per cent GS 2033 for a notified amount of Rs 3000 crore and lastly (iv) 8.17 per cent GS 2044 for a notified amount of Rs 3000 crore.