Bond yields softened as slightly better-than-expected borrowing numbers for the next fiscal year continued to aid bond prices amid lack of regular debt sales. The government has decided not sell any long-term debt until the start of the fresh borrowing schedule in April. Meanwhile, the Finance Minister in the Interim Budget 2014-15, announced that the government would sell a gross 5.97 lakh-crore worth of debt in the next fiscal year, lower than market expectations of around 6.2 lakh-crore rupees worth market borrowing.
On the global front, brent crude was little changed on Tuesday, holding above $109 a barrel, as robust demand for heating purposes from North America and a weak dollar offset concerns over disappointing U.S. data.
The yields on new 10 year Government Stock 2023 were trading 1 basis point lower at 8.79% from its previous close of 8.80% on Monday.
The benchmark five-year interest rate swaps were trading 3 basis points lower at 8.43% from its previous close of 8.46% on Monday.
The Reserve Bank of India has announced the auction of 91-days and 364-days Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 6000 crore respectively . The auction will be conducted on February 18, 2014 using 'Multiple Price Auction' method.
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