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Bond yields edge lower on bargain hunting

26 Apr 2013 Evaluate

Bonds yields were trading lower on account of bargain hunting in bonds after previous session’s sell-off, with good demand for government bonds from foreign investors and state-run banks. Data released by Clearing Corporation of India (CCIL) showed state-owned banks were the major buyers of debt, with a net purchase of Rs 52.68 billion on Thursday.

Meanwhile, Brent crude eased below $103 a barrel on Friday after rising $3 in the past two sessions, with investors cautious over the tepid outlook for growth in the world's two largest oil consumers, the United States and China.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.76% from its previous close of 7.77% on Thursday.

The benchmark five-year interest rate swaps were trading 1 basis point lower at 6.96% from its previous close of 6.97% on Thursday.

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