Bond yields edged a bit higher on Thursday in absence of any Open Market Operation (OMOs) announcement from central bank so far. On the global front, US Treasuries prices slipped on Wednesday in light trading volumes as the Federal Reserve sold short-term debt and the Treasury auctioned new Treasury Inflation-Protected Securities (TIPS). Meanwhile, Brent crude hovered near $111 as the Chinese economy showed further signs of recovery, bolstering the outlook for oil demand, though gains were capped as a ceasefire in the Gaza Strip eased concerns over supply.
The yields on 10-year 8.79% - 2021 were trading 1 basis point higher at 8.22% from its previous close of 8.21% on Wednesday.
The benchmark five-year interest rates were trading up by 1 basis point at 7.77% from its previous close of 7.76% on Wednesday.
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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