Indian bond yields inch up, buyback result watched
Tuesday, 22 June 2010
MUMBAI, June 21 (Agencies): Indian federal bond yields were range bound Monday with higher US yields damping sentiment but the government's bond buyback helped add liquidity to a cash strapped system, supporting prices, dealers said.
At 2:17 pm, the yield on the 10-year benchmark bond was at 7.58 per cent, from Friday's close of 7.56 per cent. It traded in the range of 7.55-7.60 per cent so far in the day.
US Treasuries fell Monday after China's vow to gradually make the yuan more flexible was taken as a vote of confidence in the resilience of the global economy.
A Rs 100 billion bond buy back announced by the Reserve Bank of India for Monday, on the heels of a similar one Friday supported liquidity, after a cash shortage sent overnight rates up near the RBI's main lending rate.
Dealers said they were waiting for the bond buyback auction results for further cues. A Reuters poll earlier in the day showed that the government may buy back the 12.25 per cent bond at 5.14 per cent, 11.30 per cent bond at 5.18 per cent and the 6.57 per cent bond at 5.27 per cent.
At 2:17 pm, the yield on the 10-year benchmark bond was at 7.58 per cent, from Friday's close of 7.56 per cent. It traded in the range of 7.55-7.60 per cent so far in the day.
US Treasuries fell Monday after China's vow to gradually make the yuan more flexible was taken as a vote of confidence in the resilience of the global economy.
A Rs 100 billion bond buy back announced by the Reserve Bank of India for Monday, on the heels of a similar one Friday supported liquidity, after a cash shortage sent overnight rates up near the RBI's main lending rate.
Dealers said they were waiting for the bond buyback auction results for further cues. A Reuters poll earlier in the day showed that the government may buy back the 12.25 per cent bond at 5.14 per cent, 11.30 per cent bond at 5.18 per cent and the 6.57 per cent bond at 5.27 per cent.