Bond yields edged higher tracking Rupee’s depreciation to week’s low level on the back of strong dollar demand in view of its strength in the overseas market. Nevertheless, absence of a government bond auction this week also supported bond prices.
On the global front, US Treasuries prices fell on Monday, a day ahead of the release of the government's September employment data, which was delayed by the 16-day partial federal government shutdown. Meanwhile, U.S. crude oil slipped below $99 a barrel on Tuesday, hitting its lowest since July as crude oil inventories rose more than expected in the world's largest oil consumer.
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 1 basis point higher at 8.61% from its previous close of 8.60% on Monday as the rupee extends weakness to a third day.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.23% from its previous close of 8.24% on Monday.
The Reserve Bank of India has announced the auction of 182-days Government of India Treasury Bills for notified amount of Rs 6,000 crore each. The auction will be conducted on October 23, 2013 using 'Multiple Price Auction' method.
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