Bond yields continued to trade flat for fourth straight session in row as expectations that the central bank would hold rates steady at its policy review next week grew after comments from a senior government adviser on Wednesday further weighed on the sentiment. However, any cues on likely government reforms such as a hike in diesel prices ahead of the RBI policy review on July 31 could spur gain bond prices.
On the global front, benchmark US Treasury yields ticked up from record lows in Asian trade on Thursday, as tentative hopes that global central banks may move to boost economic growth, sapped the appeal of the safe-haven US debt. Meanwhile, Brent crude slipped below $104 per barrel on Thursday as investors remained worried about fuel demand after a series of weak economic data.
Back home, the yields on 10-year benchmark 8.79% - 2021 were trading flat at its previous close of 8.10%.
The benchmark five-year interest rate was trading 3 basis points lower at 6.91% from its previous close of 6.94%.
The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on July 27, 2012 (i) “8.07 percent Government Stock 2017-JUL” 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 2,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on July 27, 2012.
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