Bond yields edge higher ahead of Rs 16,000 crore debt sale

Bond yields edged higher as traders made room for upcoming Rs 16,000 crore debt sale on Friday. The bonds after opening higher on continued buying activity soon lost ground on profit-booking in afternoon deals. On the global front, Short and medium-term U.S. Treasuries prices rose on Wednesday as the minutes from the Federal Reserve's policy meeting in March eased some worries the central bank might raise interest rates in the first half of 2015. Meanwhile, brent futures eased towards $107 a barrel on Thursday as weak China trade data stoked demand growth concerns and investors booked profits after gains of 2 percent over the past two days. The yields on new 10 year Government Stock 2023 were trading 2 basis points higher at 9.05% from its previous close of 9.03% on Thursday. The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.55% from its previous close of 8.56% on Thursday. The government of India announced the sale of four dated securities for Rs 16,000 crore on April 11, 2014, which includes (i) 7.80% Government Stock 2020 for a notified amount of Rs 3,000, (ii) 8.83% Government Stock 2023 for a notified amount of Rs 8,000, (iii) 8.32% Government Stock 2032 for a notified amount of Rs 8.32% Government Stock 2032 of Rs 3,000 crore and lastly (iv) 8.30% Government Stock 2042 for a notified amount of Rs 2,000 crore on April 11,2014.