Bond yields slip after CSO estimates GDP growth of 5% for 2012/13

The yields on 10-year 8.79% - 2021 bonds were trading 3 basis points lower at 7.88% from its previous close of 7.91% on Wednesday

Bond yields slipped after Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, estimated India's gross domestic product (GDP) to grow at an annual 5 percent in the 2012/13 fiscal year- the worst of all growth projections issued by the government and the RBI so far. Last month, Reserve bank of India had trimmed its GDP growth estimate for the fiscal year ending in March to 5.5 percent, the worst since 2002/03.

On the global front, US Treasuries stabilized in Asian trade on Thursday, and the rally in global shares paused as the market awaited European Central Bank's policy meeting later in the day. Meanwhile, brent crude was trading steady in a tight range, sub  $117 per barrel on Thursday as traders waited for the outcome of a European Central Bank (ECB) meeting and China trade data for more evidence that the global oil demand outlook was improving.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading 3 basis points lower at 7.88% from its previous close of 7.91% on Wednesday.

The benchmark five-year interest rate swaps were trading 2 basis points higher to 7.26% against its previous close of 7.28% on Wednesday.

Thirsty Thursday Quote of the Day

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Can’t borrow beyond a limit: Chidambaram Gross direct tax  grows 7.1%, Income Tax 15% in Apr-Nov Permit banks to buy back gold coins from public: RBI report India’s long-term potential rate is 7%: Goldman Sachs IMF calls for slashing SLR to spur pvt investments Net direct tax  grows 12% in April-Jan INTERNATIONAL ECONOMY UK CEOs expect more revenue German Factory Orders Add to Signs of European Recovery: Economy Netherlands AAA Outlook Cut as Fitch Cites Shocks to Economy China’s January Data Gap Vexes Economists EU Seeks to Advance U.S. Trade Deal as China’s Role Grows EQUITY MARKET Sensex falls for 5th day, NTPC, Coal India shares down over 2%, Nifty positive at close Performance of Asia-Pacific coal firms to remain subdued in 2013: S&P It’s only a conditional nod for Diageo-United Spirits open offer Merger, demerger deals need SEBI approval now Banking, fin services stocks drop on weak Q3 earnings DEBT MARKET Deposits growth continues to lag at 13.08% Call rates remain steady around previous close Bond yields edge tad higher tracing rising global crude oil prices Bunds Advance Before ECB Meeting as Spanish Notes Rise U.S. Treasury Sees Floating-Rate Note Sale Within Next Year Taiwan 10-Year Bond Yields Rise to 7-Month High  COMMODITIES Crude oil up on healthy economic indicators Time to dump gold for platinum Coffee Exports From India Set to Drop as Europe Demand Slows Carmakers Use Aluminum Over Steel in Boost for Rio: Commodities Platinum Advances to 16-Month High on Supply Woes; Gold Climbs FOREX Rupee slips a tad Brazil Swap Rates Increase on Inflation Concern; Real Advances Aussie Declines After Retail Sales Unexpectedly Fall Pound Rises Before Carney Testimony, Rate Decision; Gilts Euro Falls Toward One-Week Low Versus Dollar Before ECB   MUTUAL FUNDS Mutual funds exposure to banking stock soars to over 3-year high Gold holding through ETF touches 40,000 kg Gilt assets jump 10 times in first 3 quarters of FY13 INSURANCE Planning to buy an endowment plan? It may pay to wait a few more days Irda to Stop Schemes that Guarantee Highest NAV REAL ESTATE Commercial project 'Spire Edge' at Manesar designated as World Trade Center Panacea, Bestech join to develop township OPINION Why was IRDA sleeping? Taxing FDI Burning issues in real estate regulation Sukumar Mukhopadhyay: GST - 'Paradise lost' from fractured design KNOWLEDGE CENTER Tax-savings Bonds are  Best option before Rates Fall Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio

Thinking Tuesday Quote of the Day!!

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(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY IMF CUTS GROWTH FORECAST Global Consumer Confidence Dips, Indians Still Most Optimistic Economy to grow slower at 5.6% in 2012-13: NCAER Policy changes key to our ratings review: Fitch INTERNATIONAL ECONOMY Fed Says Banks Forecast Improved Lending Outlook for 2013 Housing Packs Punch for U.S. Growth in 2013 and Beyond Obama’s Fiscal 2014 Spending Plan Said to Be Delayed Until March Australia’s Trade Deficit Narrows on Coal, Iron Ore Export Surge  EQUITY MARKET Banking, fin services stocks drop on weak Q3 earnings Sensex ends at 3-week low sentiment still weak FMCG volumes decline, but margins hold fort in third quarter India Inc sought debt restructuring for 126 cases in 2012 India on track to become steel powerhouse: E&Y Global M&A in healthcare IT grows $7 b in 2012  DEBT MARKET Short-term Paper Yields Fall Below Bank Base Rates Bond yields tread water on Monday Call rates edge tad higher in second half of reporting fortnight Spanish, Italian Bonds Slide Amid Signs of Political Risk China Five-Year Swaps Climb to Two-Week High as Economy Improves Brazil’s Swap Rates Drop on Outlook for Currency; Real Declines COMMODITIES Gold remains firm, silver falls, Platinum Rises to 17-Week High; Palladium, Gold Advances Platinum Supply Falls to 13-Year Low as Mines Close: Commodities Oil Trades Near One-Week Low on Iran Talks Offer, Europe Crisis  FOREX Rupee settles at 53.28 against dollar Euro May Hit 3-Week Low, Credit Suisse Says: Technical Analysis Euro to Weaken to 10-Week Lows Over Next Year, Wells Fargo Says Pound Rises Versus Euro Even as Construction Contracts  MUTUAL FUNDS Gilt assets jump 10 times in first 3 quarters of FY13 Budget may offer tax sops on pension products by mutual funds MFs sport 'RGESS' tag to tap tax-saving investment  INSURANCE Irda to Stop Schemes that Guarantee Highest NAV IRDA likely to finalise norms for traditional life insurance policies soon REAL ESTATE Need to relax land use norms to boost low-cost housing: Maken Discounts through real estate group buys OPINION Sukumar Mukhopadhyay: GST - 'Paradise lost' from fractured design Abheek Barua: Post-policy blues Britain drifts away from EU KNOWLEDGE CENTER Tax-savings Bonds are  Best option before Rates Fall Park money in a contingency fund Look beyond Section 80 C for tax-saving instruments Guarding against a weak rupee How the rupee’s movements can wreck your portfolio