Bond yields, snapping two sessions gaining streak, were trading lower on Monday on some buying interest ahead of RBI’s third quarter monetary policy review. Traders, though expect RBI to yet again hold on key rates, but would be watchful after recent hawkish comments from the central bank chief. However, further fall of the yields is now unlikely on account of Rupee’s stabilization around those two months low level.
On the global front, US Treasuries prices rose on Friday, with benchmark yields hitting near two-month lows on safe-haven bids for bonds stemming from worries about tightening credit conditions in China and a looming currency crisis in Argentina. Meanwhile, brent futures eased towards $107 a barrel on Monday as concerns over a slowdown in China stoked demand-growth worries, but bitterly cold weather across the northern Hemisphere and simmering tensions in the Middle East curbed losses.
Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points lower at 8.71% from its previous close of 8.74% on Friday.
The benchmark five-year interest rate swaps were trading 2 basis points lower at 8.23% from its previous close of 8.25% on Friday.
The Government of India have announced the sale (re-issue) of '1.44% Inflation Indexed Government Stock-2023' for a notified amount of Rs 500 crore through price based auction. The auction will be conducted using uniform price method. The auction will be conducted by the Reserve Bank of India, Fort, Mumbai on January 29, 2014 (Wednesday).
The Reserve Bank of India has announced the auction of 91 and 182 days Government of India Treasury Bills for notified amount of Rs 4,000 crore and Rs 3000 crore respectively. The auction will be conducted on January 29, 2014 using 'Multiple Price Auction' method.
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