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Indian bonds steady in thin trade, auction eyed

Indian bonds steady in thin trade, auction eyed
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First Published: Thu, Feb 07 2008. 10 19 AM IST
Updated: Thu, Feb 07 2008. 10 19 AM IST
Reuters
Mumbai: Indian federal bond yields were barely moved on Thursday, 7 February, with most dealers on the sidelines ahead of auctions that would provide clues on investor appetite.
At 9:30am, the 10-year federal bond yield was at 7.49%, unchanged from the last close. Total volume was a thin Rs4.15 billion ($105 million) in the first half hour of trade.
“There is a lot of uncertainty in the market and traders are waiting for the outcome of the bond auctions before taking fresh positions,” said S. Srikumar, manager, fixed income, Corporation Bank.
The Reserve Bank of India sold treasury bills worth Rs35 billion on Wednesday and will auction market stabilization scheme bonds for Rs40 billion on Thursday and Rs90 billion of federal bonds on Friday.
The Reserve Bank of India sold 91-day treasury bills worth Rs20 billion at a cut-off yield of 7.27%. The bid-to-cover ratio was 1.27 times, according to IDBI Gilts.
Traders were also awaiting the government’s growth forecast for the fiscal year that ends in March. The data is expected around 11am.
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First Published: Thu, Feb 07 2008. 10 19 AM IST