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Bond yields remain steady on Tuesday

12 Jan 2016 Evaluate

Bond yields traded steady as investors remained cautious ahead of key economic data -industrial production (IIP) numbers for December and inflation to be released later in the day.  Investors failed to get solace with finance minister Arun Jaitley’s statement that India can move to a high-growth trajectory of 10 per cent over the next two years with higher spending on infrastructure and by creating and strengthening banks.

In the global market, Yields on U.S. Treasuries inched higher in volatile trading on Monday as falling oil prices and concerns over global growth drove stocks lower for much of the day, increasing investor appetite for safe haven U.S. government debt maturing between two and five years. Furthermore, Crude oil prices continued a relentless dive early approaching a 20 percent drop since the beginning of the year as analysts scrambled to cut their 2016 oil price forecasts and traders bet on further price falls.

Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.75% on Monday.

The benchmark five-year interest rates were trading flat from its previous close at 7.66% on Monday.        

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 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on January 13, 2015 using 'Multiple Price Auction' method

 

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