Bond yields trade flat for third consecutive session

The yields on 10-year 8.79% - 2021 were trading 1 basis point lower at 8.18% from its previous close of 8.19%

Bond yields were trading flat for third consecutive session as markets await cues from Friday's auction demand and cutoffs, whereby Centre would be selling Rs 13,000 crore worth of bonds. Further, dealers also wait for industrial output and inflation data next week, though impact may be muted as country’s apex bank has said any rate cut was unlikely till next year.

On the global front, US Treasuries were firm in Asian trade on Thursday as President Barack Obama's re-election reinforced expectations that monetary policy would stay loose. Meanwhile, Brent crude rose above $107 per barrel as an almost 4 percent slump in the previous session, its biggest fall in about a year, lured some buyers although worries on the US fiscal cliff and Europe's woes kept a lid on gains.

The yields on 10-year 8.79% - 2021 were trading 1 basis point lower at 8.18% from its previous close of 8.19%.

The benchmark five-year interest rates were trading 1 basis point higher at 7.15% from its previous close of 7.14%.

The Government of India have announced the sale (re-issue) of three dated securities for Rs 13,000 crore on November 09, 2012, which includes (i) “8.19 percent Government Stock 2020” for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) “8.20 percent Government Stock 2025” for a notified amount of  Rs 7,000 crore (nominal) through price based auction; and (iii) “8.83 percent Government Stock 2041” for a notified amount of Rs 3,000 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, Fort, and Mumbai on November 09, 2012 (Friday).