Bond yields, after opening higher, is trading flat as some value buying crept in after safe bond dropped to a two months price level. Further, bond yields also eased tracing the drop of Brent crude oil.
On the global front, US Treasury debt prices slipped slightly in Asian trade on Thursday, with investors reluctant to take aggressive positions ahead of Friday's employment data as well as next week's US presidential election. Investors kept to the sidelines on an uncertain political outlook in the world's two largest oil consumers as Americans head to the polls and new top Chinese leaders take over.
Meanwhile, Brent crude, shrugging off data pointing to a recovery in China, edged lower towards $108 a barrel on Thursday as investors focused on concerns that storm Sandy's rampage across the US East Coast could reduce fuel demand.
The yields on 10-year benchmark 8.79% - 2021 were trading flat at its previous close of 8.21%
The benchmark five-year interest rates were trading unchanged at its previous close of 7.75%.
The Government of India has announced the sale (re-issue) of three dated securities for Rs 13,000 crore which includes (i) ‘8.07 percent Government Stock 2017-JUL’ for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) ‘8.33 percent Government Stock 2026’ for a notified amount of Rs 7,000 crore (nominal) through price based auction; and (iii) ‘8.97 percent Government Stock 2030’ for a notified amount of Rs 3,000 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 November 02, 2012.
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