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Friday, August 01, 2014

Bond yields rises

10-year G-sec Paper yield closes at 8.75% 

The yield on 10-year benchmark federal paper, 8.83% GS 2023, increased by 03 basis point to close at 8.75% compared to 8.72% at close in the previous trading session. The new 10-year bond 8.40% GS 2024 ended up 02 basis points to 8.52%. The total trading volume on central bank's gilts trading platform stood at Rs 21960 crore. 

Bond yields increased as the G-Sec auction held today also saw devolvement on primary dealers in two out of the three securities including the new 10-year bond introduced last week. 

The weighted average rate in the overnight call money eased to 7.68% compared with 8.05% close in the previous session. The call money rate hovered in the range of 7.00% to 8.50% with the volume of Rs 17361.74 crore. 

The G-Sec auction worth Rs 14000 crore held today saw development in two out of three securities included. The cut-off for 8.27% GOI 2020 was set at Rs 98.72, implying a yield of 8.55%. An amount of Rs 482 crore was devolved under this security. The cut-off for 8.40% GOI 2024 was set at Rs 99.17, implying a yield of 8.52%. An amount of Rs 2963 crore was devolved under this security. The cut-off for 9.23% GOI 2043 was set at Rs 104.89, implying a yield of 8.76%.
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