Bond yields were trading a tad lower tracking a fall in global crude oil prices. However, traders remain cautious and refrained from adding position ahead of the first debt sale of the new fiscal year 2013/14. Further, traders will be keenly watching the auction demand and cut-offs at the debt sale in the new financial year for near-term direction.
On the global front, US 10-year Treasury yield hovered near a three-month low in Asian trade on Friday, after the Bank of Japan's radical stimulus campaign stirred speculation of a potential rise in Japanese investor demand for overseas debt. Meanwhile, Brent crude edged up toward $107 per barrel on Friday after hitting a 5-month low in the previous session, but prices were headed for their worst week in a month as bleak US data and bulging inventories dimmed the outlook for demand.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.95% from its previous close of 7.96% on Thursday.
The benchmark five-year interest rate swaps were down by 1 basis point each at 7.20% from its previous close.
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.
