Wednesday 3 July 2013

Bond yields creep higher on rupee’s weakness

Bond yields crept higher on Wednesday after the rupee weakened below 60 per dollar, not far from a record low of 60.76 hit last week, which in turn raised worries about continued foreign selling - a key concern for the funding of the current account deficit, also reducing the rate cut hopes from the Reserve Bank of India at its July policy review.

On the global front, US oil surged past the $100-per-barrel mark to hit a 14-month high on Wednesday as traders bet on a sharp drop in crude inventories in top consumer the United States, while tensions in the Middle East also cushioned prices.

Back home, the yields on 10-year 7.16% - 2013 bonds were trading 6 basis points higher at 7.52% from its previous close of 7.46% on Tuesday.

The benchmark five-year interest rate swaps were trading 9 basis points higher at 7.52% from its previous close of 7.43% on Tuesday.

The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on July 5, 2013 (i) “7.28 percent Government Stock 2019” for a notified amount of ` 3,000 crore (nominal) through price based auction; (ii) “7.16 percent Government Stock 2023” for a notified amount of ` 6,000 crore (nominal) through price based auction;(iii) “8.97 percent Government Stock 2030” for a notified amount of ` 3,000 crore (nominal) through price based auction, and (iv) “8.30 percent Government Stock 2042” for a notified amount of ` 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, Mumbai on July 5, 2013 (Friday).

No comments:

Post a Comment