Bond yields edged lower as traders cheered the central bank's plan to purchase debt, providing much-needed liquidity relief, which led buying in safe haven bonds. Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on December 4, 2012.
On the global front, US 10-year Treasuries prices fell slightly in Asian trade on Friday, as firm equities took away some of the appeal of fixed-income assets, but concerns about the still unresolved US fiscal impasse limited losses. Meanwhile, Brent crude was stuck below $111 per barrel on Friday, as a lack of progress in critical US budget talks to avert a looming fiscal disaster muddied the outlook for oil demand from the world's biggest consumer.
The yields on 10-year 8.79% - 2021 were trading 4 basis points lower at 8.17% from its previous close of 8.21% on Thursday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.11% from its previous close of 7.14% on Thursday.
The Government of India have announced the sale (re-issue) of three dated securities for Rs 13,000 crore on November 30, 2012, 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 30, 2012 (Friday).
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