Bond yields were treading water on Thursday amid lack of fresh cues though hopes for rate cut at the central bank’s June policy review and Friday’s sale of the new 10 year benchmark bond also weighed on the sentiment to some extent.
On the global front, US treasuries prices rose on Wednesday as the minutes from Federal Reserve’s April policy meeting reinforced the view that the central bank will likely leave interest rates near zero in June due to lingering concerns about the US economy. Meanwhile, brent crude oil prices dipped in early Asian trade on Tuesday as ongoing oversupply weighed on the markets, but prices remained within a narrow range in place since late April.
Back home, the yields on 10 year Government Stock was trading steady at Wedneday's close of 7.86%.
The benchmark five year swap rate was trading 3 basis points lower at 7.08% from its previous close of 7.11% on Wednesday.
The Government of India announce the sale of four dated securities for Rs 16,000 crore on May 22, 2015, including (i) 7.68% GS 2023 for a notified amount of Rs 3000 crore, (ii) New 10 year GS for a notified amount of Rs 9000 crore, (iii) 8.24% GS 2033 for a notified amount of Rs 2000 crore and lastly (iv) 8.17% GS 2044 for a notified amount of Rs 2000 crore.
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