Bond yields rose a tad as some investors’ trimmed positions ahead of the sale of Rs 12,000 crore worth bonds auction later in the noon. Further, worries of inflation remaining high due to rising global crude prices, is also seen weighing on bonds.
On the global front, US Treasuries were little changed in Asian trade on Friday, with all eyes on the jobs report due later in the day as investors seek to gauge the speed of recovery in the US job market, which holds the key to the US monetary policy outlook. Meanwhile, Brent crude hit its highest in more than three months on Friday and held above $115 a barrel as escalating tension in the Middle East stoked supply worries.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point up at 7.92% from its previous close of 7.91% on Thursday.
The benchmark five-year interest rate swaps were trading steady at its previous close of 7.80/85% on Thursday.
Additionally, the Government of India have announced the sale (re-issue) of three dated securities for Rs 12,000 crore on February 01, 2013, which includes, (i) “8.12 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 6,000 crore (nominal) through price based auction; and (iii) “8.30 percent Government Stock 2042” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on February 01, 2013 (Friday).
