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Bond yields soar to the highest level since August on higher US jobs data

11 Nov 2013 Evaluate

Bond yields soared to the highest level since August on Monday after US data bolstered the case for Federal Reserve to scale back stimulus as early as next month. Additionally, the debt also was pressure ahead of macro-economic report tomorrow, which is expected to show consumer-price inflation accelerated last month.

On the global front, U.S. Treasury prices fell on Friday after stronger-than-forecast October job growth revised expectations about how soon the Federal Reserve could start to scale back its bond-purchase program aimed at stimulating the economy. Meanwhile, brent futures edged up towards $106 a barrel in Asia on Monday after Iran and six world powers failed to reach a deal on Tehran's nuclear programme, while data showed a slight rise in implied fuel demand in China.

Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 13 basis points at 9.12% from its previous close of 8.99 on Friday.

The benchmark five-year interest rate swaps were trading at 8.51%, 15 basis points higher  against its previous close of  8.36% on Friday.

The Reserve Bank of India has announced the auction of 91 and 364 days Government of India Treasury Bills for notified amount of Rs 6,000 crore each. The auction will be conducted on November 13, 2013 using 'Multiple Price Auction' method

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