Bond yields soared higher tracing the rupee's fall to record lows and a jump in crude prices. Continuing its inexorable slide for third successive session, Indian rupee after opening the session at 67.06, has now hit historic lows of ‘68/$’, weighed down heavily by the colossal losses in Indian equity markets on the expected increase in government's subsidy burden following the passage of the food security bill and, uncertainty over a possible US led military strike against Syria.
On the global front, U.S. Treasuries rose in Asia as Washington and its allies prepared for likely military action against Syrian President Bashar al-Assad's forces, who were apparently behind last week's chemical weapons attacks. Meanwhile, Brent crude jumped to a six-month high over $116 a barrel amid signs that Western powers were considering a military strike against Syria to punish it for a chemical weapons attack.
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 22 basis points higher at 9% against its previous close of 8.78% on Tuesday.
The benchmark five-year interest rate swaps were trading 19 basis points higher at 8.97% from its previous close of 8.78% on Tuesday.
The Reserve Bank of India has announced the auction of 91 and 182 days Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 5,000 crore respectively. The auction will be conducted on August 28, 2013 using 'Multiple Price Auction' method.
Additionally, Reserve Bank has decided to conduct Open Market Operations by purchasing the following government securities for an aggregate amount of Rs 8,000 crore on August 30, 2013 (Friday) through multi-security auction using the multiple price method.
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