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Bond yields cheer up post Greek deal

22 Jul 2011 Evaluate

Bond yields rose tailing the US treasury yields which rose post the Euro zone leaders agreed at an emergency summit to give their financial rescue fund sweeping new powers to help Greece overcome its debt crisis and prevent market instability from spreading through the region.

On the global front, Brent crude futures rose on Friday, as Europe's action on the debt crisis and signs of progress on a U.S. deficit reduction deal offset weak economic data from the world's second largest oil consumer, China.

Meanwhile, bond yields also rose as trader’s preferred being on the sidelines ahead of the results of Rs 12,000 crore debt sale auction later in the day.

The yields on 10-year benchmark 7.80% - 2021 rose by 6 basis points at 8.33% from its previous close of 8.27% on Thursday.

The benchmark five-year interest rate swaps were up 9 basis points at 8.61% from its previous close of 8.52% on Thursday.

The Government of India announce the sale of three dated securities for Rs 12,000 crore on July 22, 2011, which is inclusive of (i) 8.07% Government Stock 2017” for a notified amount of Rs 4,000 crore (nominal), (ii) 8.08 percent Government Stock 2022” for a notified amount of Rs 5,000 crore (nominal) and (iii) 8.28 percent Government Stock 2027” for a notified amount of Rs 3,000 crore (nominal) through price based auctions.

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