Bond yields, prolonging previous three consecutive sessions’ declining spree, ebbed substantially lower on Thursday, tailing appreciation of Indian currency after fresh measures by the RBI to stem the currency’s slide. New RBI governor Raghuram Rajan on Wednesday came out with raft of measures, including more trade settlement in rupees to rescue the worn out financial markets and hinted at a shift in focus from inflation control, doggedly pursued by his predecessor, to boosting growth
On the global front, US 10-year notes fell for a third day on Wednesday as the Federal Reserve said the economy maintained a “modest to moderate” pace of expansion, bolstering a case for policy makers to cut stimulus this month. Meanwhile, brent futures inched higher on Thursday, holding above $115 a barrel, as President Barack Obama's effort to win backing for a military strike against Syria cleared its first hurdle and strong auto sales boosted the demand outlook for oil
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 11 basis points lower at 8.28% from its previous close of 8.39% on Wednesday.
The benchmark five-year interest rate swaps were trading 25 basis points lower at 8.28% from its previous close of 8.53% on Wednesday.
The Government of India have announced the sale (re-issue) of two dated securities for Rs 10,000 crore against Rs 15,000 earlier, which consists of (i) “8.12 percent Government Stock 2020” for a notified amount of Rs 3,000 crore (nominal) through price based auction; and (ii) “8.28 percent Government Stock 2027” for a notified amount of Rs 7,000 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 September 06, 2013 (Friday).
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