Bond yields were trading tad higher as investors’ preferred to be on the sidelines ahead of Rs 13,000 crore worth auction, which is also first bond auction after the RBI’s decision to keep rates on hold earlier in the week.
On the global front, US Treasury debt prices edged slightly lower in Asian trade on Friday ahead of next week's supply, but not straying from recent ranges as investors awaited US labor data later in the session and next week's US presidential election.
Meanwhile, Brent crude slipped below $108 a barrel on Friday as investors look ahead to key jobs data from the United States for more signs of economic recovery, which would boost fuel demand.
The yields on 10-year 8.79% - 2021 were trading 1 basis point higher at 8.20% from its previous close of 8.19%.
The benchmark five-year interest rates were trading 1 basis point higher at 7.10% from its previous close of 7.09%.
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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