Bonds yields were trading higher ahead of Rs 15,000 crore worth bond auction later in the session, which includes the sale of a new 10-year benchmark bond. Street widely expects the RBI may set a cut-off of 8.80% for the new 10-year benchmark.
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.
On the global front, prices for U.S. Treasury rose slightly on Thursday as investors weighed the likelihood of a pullback in stimulus by the Federal Reserve, while economic data and Fed speakers sent mixed signals. Meanwhile, brent oil futures slipped below $110 per barrel on Friday but were on track to end higher for the second week running after sharp overnight gains, with investors waiting for the outcome of talks on Iran's nuclear programme.
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading 2 basis points higher at 9.10% from its previous close of 9.08% on Thursday.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.48% from its previous close of 8.49% on Thursday.
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