Bond yields trade steady on Friday

Bond yields after nudging up in opening deals tracking higher US yields are currently steady on Friday as the mood was cautious before the Rs 12,000 crore bond auction scheduled later in the day. 

On the global front, US treasuries edged down slightly in Asian trade on Friday as a warning from Standard and Poor's on US borrowing underscored concerns on whether the government will be able to hammer out a deal to raise its debt ceiling.

The yields on 10-year benchmark 7.80% - 2021 was trading steady at its previous close of 8.24% on Friday

The benchmark five-year interest rate swaps were down by 1 basis point at 7.46% from its previous close of 7.47% on Thursday.

The Government of India have announced the sale of three dated securities for Rs 12,000 crore on July 15, 2011 of (i) “7.83 percent Government Stock 2018” for a notified amount of Rs 3,000 crore (nominal), (ii) “7.80 percent Government Stock 2021” for a notified amount of Rs 6,000 crore (nominal) and (iii) “8.30 percent Government Stock 2040” for a notified amount of Rs 3,000 crore (nominal) through price based auctions.