Bond yields likely lower on global cues June 17, 2009
Posted by dhirendra1972 in Bond Maturing, Heavily Traded, Heavy Supplies, Sharp Falls, Softening Oil Price.Tags: 2009 Fiscal Year, Annual Budget, Barrel, Billionm Rupees, Bond Auction, Central Bank, Indian Benchmark Yields, Industrial Data, Matured Bonds, Oil Price, Treasury Bills, Trillion Rupees, US Crude, US Treasury, US Treasury Debt Price
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Good morning friends. It was said that the central bank will sell 60 billion rupees ($1.25 billion) of treasury bills. Bonds yields likely lower on global cues.
Indian benchmark yields may slip on Wednesday following lower US Treasury yields and softening oil prices but sharp falls may be checked ahead of heavy supplies this week.
The yield on the heavily traded 6.07 per cent bond maturing in 2014 ended at 6.67 per cent on Tuesday, above Monday’s 6.63 per cent.
The 10-year bond ended at 6.88 per cent on Tuesday against Friday’s close of 6.89 per cent. The central bank will sell 60 billion rupees ($1.25 billion) of treasury bills on Wednesday and will buy back 60 billion of bonds on Thursday before it auctions 150 billion rupees of debt on Friday.
Friday’s bond auction will be the fifth consecutive weekly auction for which the central bank has increased the size by 25 per cent to 150 billion rupees. It said in May it would increase the size for the first two auctions only.
Traders are worried the government will increase its borrowing plan in the annual budget on July 6, from a record 3.6 trillion rupees set initially in February for the fiscal year 2009/10 that began on April 1. US crude futures fell for a fourth day to below $70 a barrel. US Treasury debt prices rose on Tuesday on weak industrial data. The Economic Times
