Bonds yields were trading higher tailing overnight surge of US treasuries and weakness in currency in domestic market. On the macro-front, Indian rupee lost more ground in early deals on Thursday on account of sustained demand for the US currency from banks and importers in view of its strength in the overseas market.
On the global front, the yield gap between short- and long-dated U.S. Treasuries expanded to the widest level in over two years on Wednesday, after Federal Reserve meeting minutes added to expectations that the Fed will hold interest rates at record lows for several years, even after it ends its bond purchase program. Meanwhile, Brent futures slipped below $108 a barrel on Thursday on expectations for the U.S. Federal Reserve to scale back its massive economic stimulus and world powers to strike a preliminary deal with Iran over its nuclear programme.
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 6 basis points higher at 9.10% against its previous close of 9.04% on Wednesday.
The benchmark five-year interest rate swaps were trading 4 basis points higher at 8.49% from its previous close of 8.45% on Wednesday.
The government of India has announced the sale of four dated securities for Rs 15,000 crore on November 22, 2013, which includes, 7.28 % Government Stock 2019 for a notified amount of Rs 3000 crore; New 10 year Government Stock 2023 for a notified amount of Rs 7000 crore; 8.32 % Government Stock 2032 for a notified amount of Rs 2000 crore and lastly, 8.30 % Government Stock 2042 for a notified amount of Rs 3000 crore.
