Bond yields were trading steady ahead of Rs 12,000 crore worth Open Market Operations (OMO) to be held by Reserve Bank of India (RBI), later in the day.
On the global front, US Treasuries were largely unchanged in Asian trade on Tuesday after slipping the previous day on reduced demand for safe haven debt after Spain sought help for its banks and data from China showed an improvement in the pace of manufacturing. Meanwhile, Brent crude slipped toward $110 per barrel on Tuesday as demand concerns moved into focus after weak manufacturing data from the United States, the world's top oil consumer, while its uncertain fiscal deficit negotiations also kept investors on the edge.
Back home, 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.
The yields on 10-year 8.79% - 2021 were trading steady at its previous close of 8.17%.
The benchmark five-year interest rates were trading unchanged at its previous close of 7.12%.
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 December 05, 2012 using 'Multiple Price Auction' method.
The Government of India have announced the sale (new/re-issue) of three dated securities for Rs 12,000 crore on December 07, 2012, which includes (i) “a new 8-Year Government Stock 2020” for a notified amount of Rs 4,000 crore (nominal) through yield based auction; (ii) “8.20 percent Government Stock 2025” for a notified amount of Rs 6,000 crore (nominal) through price based auction; and (iii) “8.83 percent Government Stock 2041” for a notified amount of Rs 2,000 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 December 07, 2012 (Friday).
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