Pre Weekly Food Inflation data:
Bond yields edged lower as traders resorted to the safe-haven government debts amid concerns over the euro zone's debt crisis and weakened economies. Bond yields were also trading lower tracking lower U.S. yields, euro and oil prices. Meanwhile dealers will also watch out for weekly inflation data and debt sale auction worth Rs 1,000 crore due to be held later in the day.
On the global front, the U.S. yield curve flattened on Wednesday as near-zero short-term interest rates pushed investors to buy longer-dated bonds to get a higher return. Brent crude fell, staying below $111 a barrel on Thursday as ongoing concerns over Europe's debt crisis and a firmer dollar drew investors away from riskier assets like oil and into the safe havens of gold and the Swiss franc.
The yields on 10-year benchmark 7.80% - 2021 was trading lower at 8.30% from its previous close of 8.32% on Wednesday.
The benchmark five-year interest rate swaps were trading at 6.88% down from its previous closing of 6.95% on Wednesday.
The Government of India has announced the sale of three dated securities for Rs 10,000 crore on August 18, 2011, which includes, (i) “8.07% Government Stock 2017” for a notified amount of Rs 3,000 crore (nominal), (ii) “8.08 percent Government Stock 2022” for a notified amount of Rs 4,000 crore (nominal) and (iii) “8.28 percent Government Stock 2032” for a notified amount of Rs 3,000 crore (nominal) through price based auctions.
Pre Weekly Food Inflation data:
India’s weekly food inflation measured by the wholesale price index moderated to 9.03% for the week ended August 6, from 9.90% in the previous week. According to the data released by Ministry of Commerce and Industry, the index for Food Articles group declined by 1.7% to 191.9 (Provisional) from 195.3 for the previous week. The index for primary articles group which has the highest weightage of 20.12% in WPI declined by 0.9% to 197.5 (Provisional) from 199.3 (Provisional) for the previous week. Meanwhile, the index for Fuel & Power group which has the weightage of 14.91% in WPI rose by 0.9% to 167.2 (Provisional) from 165.7 for the previous week.
The yields on 10-year benchmark 7.80% - 2021 was trading at 8.29% from its previous close of 8.32% on Wednesday.
The benchmark five-year interest rate swaps were trading at 6.81% from its previous closing of 6.95% on Wednesday.
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