Bond yields hardened after government set its target for gross market borrowing at Rs 6.29 trillion in 2013/14, above estimates of less than Rs 6 trillion.
On the global front, US Treasuries were steady in Asian trading on Thursday, caught between rising risk appetite after reassurance that the Federal Reserve will continue buying debt and ongoing concerns about looming US spending cuts. Meanwhile, Brent crude Brent crude rose above $112 a barrel on Thursday after Federal Reserve Chairman Ben Bernanke reassured markets of his commitment to economic stimulus while strong demand for Italian debt calmed worries over its political crisis.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading higher by 5 basis points at 7.86% from its previous close of 7.80% on Wednesday.
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 government securities for an aggregate amount of Rs 10,000 crore on March 1, 2013 through multi-security auction using the multiple price method.
