Bond yields were treading water on Thursday as investors largely stayed on the sidelines in the absence of any fresh triggers. Sentiments remained cautious with global rating agency Fitch lowering India's economic growth projections to 7.8 percent for the current fiscal from 8 percent earlier on pickup in demand and said that the country’s business environment is relatively weak compared with peers and will take time to turn around. However, a slew of positive factors including rebound in the growth of India’s core sector, hopes of Greece deal and advancement of monsoons limited the losses.
In the global markets, US Treasury prices declined on Wednesday as hopes for a Greece debt deal prompted investors to pare safe-haven bids, while a stronger-than-expected report on private jobs growth revived bets on a Federal Reserve rate hike later this year. Further, Oil prices recovered Thursday after the Iran nuclear talks were extended until July 7, giving oversupplied markets a breather despite uncertainty over the Greek financial crisis.
Back home, the yields on 10 year Government Stock was trading 1 basis point higher at 7.82% from its previous close of 7.83% on Wednesday.
The benchmark five year yields were trading down by 1 basis point at 8.02% from its previous close of 8.03% on Wednesday.
The Reserve Bank of India has announced the auction of 91-days and 182-days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on July 02, 2015 using 'Multiple Price Auction' method.
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