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Bond yields edge lower on strong bidding in Rs 15,000 crore worth debt auction

06 Jan 2014 Evaluate

Bond yields edged lower on Monday as Strong auction bidding on Friday provided some support to bonds. Meanwhile, the yields have also fallen, as the street expects December inflation numbers to be softer.

On the global front, U.S. Treasury prices fell on Friday with benchmark yields ending at 3 percent after Federal Reserve Chairman Ben Bernanke gave an upbeat outlook on the U.S. economy, supporting the view the Fed will continue to scale back its bond purchases in 2014. Meanwhile, brent crude edged up over $107 a barrel on Monday, bouncing back from its biggest weekly fall in six months, but the restart of a key Libyan oil field could limit further gains.

Back home, the yields on new 10 year Government Stock 2023 were trading 2 basis points lower at 8.81% from its previous close of 8.83% on Friday.

The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.39% from its previous close of 8.40% on Friday.

The Reserve Bank of India has announced the auction of 364 and 91 days Government of India Treasury Bills for notified amount of Rs 3,000 crore and Rs 4000 crore respectively, which will be conducted on January 8, 2014 using 'Multiple Price Auction' method

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