Bond yields edge higher in subdued session of trade

Bond yields were trading higher in subdued session of trade after central bank's announcement of term repo auctions for next month was seen reducing the prospects of bond purchases via open market operations. The Reserve Bank will conduct a 14 day term repo variable rate auction for a notified amount of Rs 39,000 crore on February 21, 2014 (Friday). The auction will be conducted as per the revised guidelines issued on February 13, 2014. On the global front, U.S. Treasury prices slipped on Wednesday as minutes of the Federal Reserve's January meeting showed members supported continued tapering of the central bank's bond-buying program in the absence of a significant change in the economy. Meanwhile, Brent crude slid towards $110 a barrel on Thursday, dragged down by a survey that pointed to slower growth in China, the world's second largest oil consumer. The yields on new 10 year Government Stock 2023 were trading 2 basis points higher at 8.79% against its previous close of 8.77% on Tuesday. The benchmark five-year interest rate swaps were trading 1 basis point higher at 8.44% from its previous close of 8.45% on Tuesday.