Evening Bells: Bond yield eases
10-year benchmark federal paper yield closes at 8.60%
The yield on 10-year benchmark federal paper, 7.16% GS 2023, closed 17
bps down at 8.60% compared with 8.77% at the close in the previous
trading session. The total trading volume on central bank's gilts
trading platform stood at Rs 19760 crore.
The bond yields eased tracking improvement in rupee for the second day, witnessing signs of stability.
The scheduled commercial banks borrowed Rs 39984 crore from RBI against
65 bids submitted at repo window under LAF operation held today.
The weighted average rate in the overnight call money increased to
10.35% compared to 10.26% on previous session. The call money rate
hovered in the broad range of 10.20% to 10.45% with the trading volume
of Rs 13823.64 crore.
The Reserve Bank of India has announced the auction of 364-days
Government of India Treasury Bills for notified amount of Rs 5000 crore
and the auction of 91-days Government of India Treasury Bills for
notified amount of Rs 7000 crore. The auctions will be conducted on 04
September 2013.
The RBI accepted securities amounting to Rs 6,230.31 crore in OMO
purchases held today, against notified amount of Rs 8000 crore. The
total offerings by market participants were placed at Rs 21222.50 crore.
The cut-off yield for accepted securities was set at 9.09% for 8.20% GS
2025, 9.08% for 8.33% GS 2026, 9.08% for 8.32% GS 2032 and 9.10% for
8.30% GS 2042.
The G-Sec auction held today saw devolvement on primary dealers under
three out of four securities. The cut-off for 7.28% GS 2019 was placed
at Rs 90.71, implying a yield of 9.40%. The amount devolved under this
security was Rs 688.10 crore. The cut-off for 7.16% GS 2023 was placed
at Rs 89.21, implying a yield of 8.83%. This security was fully
subscribed.
The cut-off for 8.28% GS 2032 was placed at Rs 90.77,
implying a yield of 9.34%. The amount devolved under this security was
Rs 440.35 crore. The cut-off for 8.83% GS 2041 was placed at Rs 94.83,
implying a yield of 9.35%. The amount devolved under this security was
Rs 1376.49 crore.
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