Bond yields were treading water ahead of Rs 15,000 crore debt sale later in the day, wherein, good demand is expected. On the global front, US Treasury debt prices rose on Thursday after the Treasury saw solid demand for new inflation-linked bonds, though benchmark yields held above 2 percent as traders worried about how high yields might rise whenever the US Federal Reserve decides to taper its bond purchases. Meanwhile, Brent crude oil prices retraced earlier losses after falling to a three-week low on Thursday in a broader commodities selloff, riding the coattails of a late turnaround in US equities to end flat.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.37% from its previous close of 7.38% on Thursday, while the new 10-year paper is trading 2 basis point lower at 7.13% against its previous close.
The benchmark five-year interest rate swaps were trading steady at its previous close of 6.78% on Thursday.
The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on May 24, 2013 (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;(iii) “8.32 percent Government Stock 2032” for a notified amount of Rs 3,000 crore (nominal) through price based auction, and (iv) “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 May 24, 2013 (Friday).
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