Bond yields fall; auction details awaited

Bond yields fall; auction details awaited
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First Published: Mon, Jan 12 2009. 05 10 PM IST
Updated: Mon, Jan 12 2009. 05 10 PM IST
Mumbai: Federal bond yields eased on Monday as the government did not announce the date for the Rs100 billion debt auction due between 13 January and 20 January.
At 1:50pm, the 10-year benchmark bond yield was at 5.88%, below Friday’s close of 6.20%.
However, bond yields rose as much as 10 basis points after the industrial data came in higher than market expectations.
Industrial output ose 2.4% in November from a year earlier, rebounding from the previous month’s revised decline of 0.3%.
Traders said they would now look for auction details from the RBI before taking fresh positions. If the auction is coupled with a buyback of intervention bonds, then yields could fall, whereas, if there is only fresh bond sale then yields are likely to rise.
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First Published: Mon, Jan 12 2009. 05 10 PM IST
More Topics: Markets | India | Money | Bonds Yields | RBI |