Bond yields edged higher on account of traders cautiousness ahead of Rs 15,000 debt sale auction later in the day. Meanwhile, prevailing caution ahead of inflation and industrial output data due next week, also kept dealers on the sidelines. Additionally, Rupee’s weakness also weighed on the sentiment. On the currency front, Indian rupee, after taking a bit of breather in the previous trading session, yet again resumed its losing streak with vigor on Friday on account of dollar’s strength against the basket of other major currencies
On the global front, prices for U.S. Treasuries rose on Thursday on a surprise rate cut by the European Central Bank and concern about future U.S. economic growth. Meanwhile, Brent futures slipped on Friday as China's crude imports in October fell to the lowest in more than a year, but an improvement in the overall trade numbers stemmed a further slide and kept the contract above $103 a barrel.
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 3 basis points higher at 8.88% from its previous close of 8.85% on Thursday.
The benchmark five-year interest rate swaps were trading unchanged at its previous close of 8.35% on Thursday.
The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on November 8, 2013 (i) “7.28 percent Government Stock 2019” for a notified amount of Rs 4,000 crore (nominal) through price based auction; (ii) “7.16 percent Government Stock 2023” for a notified amount of Rs 7,000 crore (nominal) through price based auction;(iii) “8.32 percent Government Stock 2032” for a notified amount of Rs 2,000 crore (nominal) through price based auction, and (iv) “8.30 percent Government Stock 2042” for a notified amount of Rs 2,000 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 November 8, 2013 (Friday).
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