Bond yields were trading tad lower tracing overnight fall of US treasuries yields, however higher Brent crude prices restricted the upside of bond prices. Nevertheless, the yields also were trading lower on bargain buying activities after the bond prices slipped to eight week low in the previous session on account of dealers’ cautiousness ahead of Rs 8530 crore sale of state loans.
On the global front, U.S. Treasuries' prices rose on Tuesday as traders focused on weakening U.S. consumer confidence, conveniently shrugging off stronger-than-expected data showing U.S. home prices last year climbed the most since 2005. Meanwhile, brent futures held above $109 a barrel on Wednesday, drawing support from data showing a steep fall in crude stockpiles at the delivery point for the U.S. benchmark, while weak U.S. economic indicators overnight kept any gains in check.
The yields on new 10 year Government Stock 2023 were trading 1 basis point lower at 8.86% from its previous close of 8.87% on Tuesday.
The benchmark five-year interest rate swaps were trading steady at its previous close of 8.53% on Tuesday.
The Reserve Bank of India has announced the auction of 91 and 182-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 26, 2014 using 'Multiple Price Auction' method.
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