Bonds yields were consolidated after spiking to nearly life time high levels in previous trading session after RBI decided to further cap the overnight borrowing window. Nevertheless, cautiousness ahead of Rs 16,000 crore worth debt sale was also weighing on the sentiment. Meanwhile, outcome from the underwriting commission were crucial to gauge demand for bond auction of Rs 16,000 crore as appetite weakened because most bonds on offer are illiquid.
On the global front, U.S. Treasuries yields edged higher on Wednesday after data showed U.S. private payrolls were revised higher and factory orders rose sharply in February, supporting expectations of an upbeat non-farm payrolls report on Friday. Moreover, Brent crude rose on Thursday, but prices held near a five-month low as the market braced for a rise in Libyan supply after the government inched closer to a deal with rebels to reopen oil ports.
The yields on new 10 year Government Stock 2023 were trading steady at its previous close of 8.96% on Wednesday.
The benchmark five-year interest rate swaps were trading steady at its previous close of 8.59% on Wednesday.
The Government of India announced the sale of four dated securities for Rs 16,000 crore on April 4, 2014, including (i) 8.35% Government Stock 2022 for a notified amount of Rs 4,000 crore, (ii) 8.28% Government Stock 2027 for Rs 7,000 crore , (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2,000 crore and (iv) 9.23% Government Stock 2043 for a notified amount of Rs 3000 crore