Pre-weekly food inflation data:
Indian bond yields rose on Thursday morning tracking an overnight rise in US yields after Greece approved an austerity plan, while the local traders awaited for the weekly food and fuel price data for further cues.
On the global front, U.S. Treasury yields reached their highest levels in a month on Wednesday on signs Greece is near a resolution to its debt issues lifting a safe haven bid that has driven demand for the past month.
The yields on 10-year benchmark 7.80% - 2021 was up 3 basis points at 8.35%.
The benchmark five-year interest rate swap was up 4 basis points at 7.78%.
Government of India has announced the sale of four dated securities for Rs 15,000 crore on July 1, 2011. The Government of India have announced the sale (re-issue) of (i) “7.83 percent Government Stock 2018” for a notified amount of Rs 3,000 crore (nominal), (ii) “7.80 percent Government Stock 2021” for a notified amount of Rs 6,000 crore (nominal), (iii) “8.26 percent Government Stock 2027” for a notified amount of Rs 3,000 crore (nominal) and (iv) “8.30 percent Government Stock 2040” for a notified amount of ` 3,000 crore (nominal) through price based auctions. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai on July 1, 2011.
Post-weekly food inflation data:
India’s food inflation after soaring to its two and half month’s high level in the last week has fallen to 7.78 % on annual basis for the week ended June 18. The latest fall in food inflation numbers almost by 1.35% is likely to come as a relief to the government, which had to deal with a series of bad news during recent weeks on the economic front. The index for 'fuel and power' with a weight of 14.91% in overall WPI, rose by 0.2% to 160.2 (Provisional) from 159.9 (Provisional) for the last week due to higher prices of aviation turbine fuel (3%), naphtha (2%) and furnace oil (1%).
The annual rate of inflation, calculated on point to point basis, stood at 11.84 percent (Provisional) for the week ended June 18 as compared to 12.62 percent (Provisional) for the previous week.
The yields on 10-year benchmark 7.80% - 2021 was up 3 basis points at 8.35%.
The benchmark five-year interest rate swap was unchanged at 7.78%.
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