Bond yields plunged tracking a recovery in the rupee from record lows reached on Wednesday following the central bank measures. In its latest attempt to shore up a currency that has slumped to historic lows, Reserve Bank of India (RBI) has opened a forex swap window to help the three state-owned oil marketing companies (OMCs), IOC, BPCL and HPCL to meet their entire daily dollar requirements. The PSU oil companies are the biggest buyers of dollars, requiring $ 8-8.5 billion every month for the import of an average 7.5 million tonnes of crude oil
On the global front, U.S. Treasury debt prices fell on Wednesday, with a debt sale coming in lukewarm, after Treasuries posted gains for three straight sessions as investors worried about weaker U.S. economic data and possible military action in Syria. Meanwhile, Brent crude slipped below $116 a barrel on Thursday, taking a breather, after its strongest 2-day gain since January 2012 over fears of oil-supply disruptions in the Middle East as western nations prepared to intervene in Syria.
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 17 basis points lower at 8.79% against its previous close of 8.96% on Thursday.
The benchmark five-year interest rate swaps were trading 26 basis points lower at 8.84% from its previous close of 9.1% on Thursday.
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.
