Bond yields were trading almost steady, after previous session’s rally, on account of cautious stance adopted by the trader’s ahead of Rs 16,000 crore worth government bond auction on July 13.
On the global front, US Treasuries edged higher in Asia on Friday, as risk appetite faded post Moody's Investors Service slashed Italy's credit rating and also as Chinese economic growth data despite coming in line with expectations, underscored worries about the slowdown in that country. Meanwhile, Brent crude slipped below $101 a barrel on Friday as China grew at its slowest pace in three years, fanning the fears that a global economic slowdown could hurt fuel demand.
Back home, the yields on 10-year benchmark 8.79% - 2021 edged up 1 basis point to 8.11% from its previous close of 8.12% on Thursday.
The benchmark five-year interest rates were up 3 basis points at 6.99% from its previous close of 6.96% on Thursday.
Meanwhile, the Government of India have announced the sale (re-issue) of four dated securities for Rs 16,000 crore on July 13, 2012 (i) “8.07 percent Government Stock 2017” for a notified amount of Rs 4,000 crore (nominal) through price based auction; (ii) “8.15 percent Government Stock 2022” for a notified amount of Rs 6,000 crore (nominal) through price based auction; (iii) “8.97 percent Government Stock 2030” for a notified amount of Rs 3,000 crore (nominal) through price based auction; and (iv) “8.33 percent Government Stock 2036” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method.