Bond yields dropped post Reserve Bank of India (RBI), after market hours on March 19, decided to conduct Open Market Operations (OMO) by purchasing government securities for an aggregate amount of Rs 10,000 crore on March 22, 2013 through multi-security auction using the multiple price method.
On the global front, US Treasuries prices climbed on Tuesday as a plan in Cyprus to tax bank accounts to help pay for a bailout unraveled, creating uncertainty about the island country's financial future and reviving fears about the stability of the euro-zone. Meanwhile, Brent crude rose toward $108 a barrel on Wednesday, recovering from a three-month low hit in the previous session, even as uncertainty in the euro zone after Cyprus rejected bailout terms capped the gains.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading lower by 2 basis points at 7.92% from its previous close of 7.94% on Tuesday.
The benchmark five-year interest rate swaps were trading higher by 2 basis points at 7.21% from its previous close of 7.19% on Tuesday.
The Reserve Bank of India has announced the auction of 91-day and 364-day Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 5,000 crore respectively. The auction will be conducted on March 20, 2013 using 'Multiple Price Auction' method.
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