Bond yields edged higher on Friday as selling emerged ahead of the government debt sale and as trade remained cautious ahead of the US labour market data.
The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on July 5, 2013 (i) “7.28 percent Government Stock 2019” for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) “7.16 percent Government Stock 2023” for a notified amount of ` 6,000 crore (nominal) through price based auction;(iii) “8.97 percent Government Stock 2030” 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 uniform price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on July 5, 2013 (Friday).
On the global front, US Treasuries prices had fallen on Wednesday in a short pre-holiday session with investors awaiting labor market data on Friday that could help shed more light on the Fed's bond buying program. Meanwhile, Brent crude held above $105 a barrel on Friday and was on course for its strongest weekly gain in a month, ahead of key US jobs data that could bolster confidence in recovery in the world's largest oil consumer.
Back home, the yields on 10-year 7.16% - 2013 bonds were trading 3 basis points higher at 7.45% from its previous close of 7.42% on Thursday.
The benchmark five-year interest rate swaps were trading 7 basis points higher at 7.45% from its previous close of 7.38% on Thursday.
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