Bond yields were trading steady, after rising 1 basis point in early deals, after a report said central bank governor reiterates warning on inflation.
Tempering the expectations of generous interest rate cuts beginning this month, Reserve Bank of India (RBI) Governor Duvvuri Subbarao underscored that India's inflation has come off a peak but is still high. Although acknowledging the sagging growth of Indian economy, he said, ‘when growth is slowing down, the economy can be stimulated either by monetary easing or by fiscal stimulus, but both monetary and fiscal side have no room for stimulus.’
On the global front, US Treasuries rose in Asian trading on Thursday, attracting investors' favour as stocks erased early gains. Meanwhile, Brent futures slipped on Thursday as concerns about a weakening global economic outlook revived demand worries, but the contract stayed above $109 a barrel on supply concerns after Islamist militants attacked an Algerian gas field. Additionally, forecast of weak crude demand in 2013 added to the pressure.
Closer home, the yields on 10-year 8.79% - 2021 were trading steady at its previous close of 7.88% on Wednesday.
The benchmark five-year interest rates were trading steady at its previous close of 7.15% on Wednesday.
The Government of India have announced the sale (re-issue) of three dated securities for Rs 12,000 crore on January 18, 2013, which includes, (i) ‘8.07 percent Government Stock 2017-JUL’ for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) ‘8.33 percent Government Stock 2026’ for a notified amount of RS 6,000 crore (nominal) through price based auction; and (iii) ‘8.97 percent Government Stock 2030’ for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method.
No comments:
Post a Comment