Bond yields trade steady ahead of Rs 16,000 crore debt sale
The yields on 10-year benchmark 8.79% - 2021 edged 1 basis point higher at 8.17% from its previous close of 8.16%
Bond yields were trading almost steady ahead of Rs 16,000 crore debt sale auctions, scheduled to be held later in the day. However, little caution also prevailed as investors’ waited to see whether the government takes any steps on fiscal consolidation, including a diesel price hike ahead of its Mid-quarter policy review, on September 17, 2012.
On the global front, US Treasuries yields were trading steady in Asian trade on Friday after a sharp rise the previous day following the European Central Bank's much awaited announcement of a new bond-buying scheme and a raft of solid US economic data. Meanwhile, Brent futures fell below $113 per barrel on Friday ahead of a US jobs report, which is expected to give an indication of the economic health of the world's biggest oil consumer and also United States considered a release of emergency oil reserves, potentially much larger than the last one.
The yields on 10-year benchmark 8.79% - 2021 edged 1 basis point higher at 8.17% from its previous close of 8.16%.
The benchmark five-year interest rates rose 1 basis point to 7.16% from its previous close of 7.15%.
The Government of India has announced the sale (re-issue) of four dated securities for Rs 16,000 crore on September 7, 2012, which includes (i) ‘8.07 percent Government Stock 2017-JUL’ for a notified amount of Rs 4,000 crore (nominal) through price based auction; (ii) ‘8.15 percent Government Stock 2022’ for a notified amount of Rs 7,000 crore (nominal) through price based auction; (iii) ‘8.97 percent Government Stock 2030’ for a notified amount of Rs 3,000 crore (nominal) through price based auction; and (iv) ‘8.33 percent Government Stock 2036’ for a notified amount of Rs 2,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on September 07, 2012 (Friday).
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