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Bond yields tread water for second consecutive session

20 Nov 2012 Evaluate

Bond yields were treading water for second consecutive session in week as market participants stayed on the sidelines awaiting announcement from the central bank on any possible open market operation (OMO) after repo bids came in above Rs 100,000 crore in last week.

On the global front, US Treasuries were steady in Asian trade on Tuesday after posting small losses the previous day on optimism that US lawmakers may reach a deal to avert the 'fiscal cliff', which threatens to push the US economy into a recession. Meanwhile, Brent crude held steady above $111 a barrel on Tuesday, on hopes a US budget crisis will be averted and on supply worries triggered by tension in the Middle East.

The yields on 10-year 8.79% - 2021 were trading steady at its previous close of 8.19% on Monday.

The benchmark five-year interest rates were trading 1 basis point higher at 7.16% from its previous close of 7.15%.

The Reserve Bank of India has announced the auction of 91-day and 182-day Government of India Treasury Bills for notified amount of Rs 5,000 crore each. The auction will be conducted on November 21, 2012 using 'Multiple Price Auction' method. 

The Government of India have announced the sale (re-issue) of three dated securities for Rs 13,000 crore on November 23, 2012 (i) “8.19 percent Government Stock 2020” for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) “8.20 percent Government Stock 2025” for a notified amount of Rs 7,000 crore (nominal) through price based auction; and (iii) “8.83 percent Government Stock 2041” 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, Fort, Mumbai on November 23, 2012 (Friday).

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