Bond yields after rising to three months high level in previous trading session, were trading tad lower on account of bargain buying. Bonds dropped in the previous session on supplies woes, as the government plans to borrow Rs 349,000 crore during April-September period out of a total borrowing of Rs 579,000 crore for the full fiscal year to March 2014.
Meanwhile, the Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on April 5, 2013, which includes (i) “8.12 percent Government Stock 2020” for a notified amount of Rs 4,000 crore (nominal) through price based auction; (ii) “8.33 percent Government Stock 2026” for a notified amount of Rs 6,000 crore (nominal) through price based auction; and (iii) “8.32 percent Government Stock 2032” for a notified amount of Rs 2,000 crore (nominal) through price based auction, (iv) “8.30 percent Government Stock 2042” for a notified amount of Rs 3,000 crore (nominal) through price based auction.
On the global front, US Treasuries steadied in Asian trade on Wednesday, after slipping the previous day as worries of a major banking crisis in the euro zone receded and as investors braced for a solid recovery in US employment. Meanwhile, Brent crude slipped toward $110 a barrel on Wednesday, dropping for a second straight day, as swelling oil inventories in the United States and recent weak data fuelled worries about demand from the world's top consumer.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.98% from its previous close of 7.99% on Tuesday.
The benchmark five-year interest rate swaps eased 1 basis point at 7.22% from its previous close of 7.23% on Tuesday.
