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Bond yields tread water in absence of fresh cues on Tuesday

26 May 2015 Evaluate

Bond yields were treading water on Tuesday in absence of fresh cues and also as US treasury market were shut overnight. However, yield on new 10 year benchmark was trading lower than the coupon rate set for it last Friday when it was first launched on speculations of RBI slashing interest rates in its upcoming monetary policy on June 2, 2015.

Back home, US treasuries markets were closed on Monday for a public holiday. Meanwhile, Crude oil prices were broadly unchanged in early trading on Tuesday, as firm demand supported and ample supply dragged, but analysts said there were signs that a recent rally was running out of steam.

Back home, the yields on 10 year Government Stock was trading unchanged at Monday’s close of 7.86%.

The yields on new 10 year government bond was trading down 2 basis points lower at 7.66% from its previous close of 7.68% on Monday. 

The benchmark five year swap rate was trading down 1 basis point lower at 7.09% from its previous close of 7.10% on Monday.

Eight State Governments have offered to sell 10 year securities by way of auction for an aggregate amount of Rs 6,850 crore on May 26, 2015.

The Government of India announce the sale of four dated securities for Rs 16,000 crore on May 29, 2015, including (i) 7.68% GS 2023 for a notified amount of Rs 3000 crore, (ii) 7.88% GS 2030 for a notified amount of Rs 7000 crore and (iii) 7.95% GS 2032 for a notified amount of Rs 3000 crore and lastly (iv) 8.17% GS 2044 for a notified amount of Rs 3000 crore.

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