www.moneyspidery.com/2012/02/09/india-bond-yields-seen-higher-on-rbi-debt-buy-pause/
MUMBAI:
Indian government bond yields are expected to open higher on Thursday
weighed by absence of debt buy by the Reserve Bank of India this week to
support the scheduled government auction.
* New Delhi will sell 30 billion rupees ($610.31 million)each of 8.19
percent 2020 bonds and 8.97 percent 2030 bonds, and 60 billion rupees
of 9.15 percent 2024 bonds on Friday.
* The 10-year benchmark bond yield is seen opening at 8.24 percent and trade in a band of 8.22 percent to 8.28 percent in the session. It ended at 8.23 percent on Wednesday, 4 basis points higher than the previous close.
* Traders said higher U.S. yields are also seen weighing on the market, with the participants watching European Central Bank policy decision for cues.
* U.S. Treasuries prices fell slightly in late trade on Wednesday after a $24 billion sale of 10-year U.S. government debt – offering a yield above 2 percent – attracted good demand.
* The ECB is likely to keep interest rates on hold at its policy meeting on Thursday but it may signal it is ready to cut rates in March.
* The RBI will still consider buying bonds to inject cash in the banking system, depending on the level of bank borrowings from the central bank, said Subir Gokarn, a deputy governor.
MUMBAI:
Indian government bond yields are expected to open higher on Thursday
weighed by absence of debt buy by the Reserve Bank of India this week to
support the scheduled government auction.* The 10-year benchmark bond yield is seen opening at 8.24 percent and trade in a band of 8.22 percent to 8.28 percent in the session. It ended at 8.23 percent on Wednesday, 4 basis points higher than the previous close.
* Traders said higher U.S. yields are also seen weighing on the market, with the participants watching European Central Bank policy decision for cues.
* U.S. Treasuries prices fell slightly in late trade on Wednesday after a $24 billion sale of 10-year U.S. government debt – offering a yield above 2 percent – attracted good demand.
* The ECB is likely to keep interest rates on hold at its policy meeting on Thursday but it may signal it is ready to cut rates in March.
* The RBI will still consider buying bonds to inject cash in the banking system, depending on the level of bank borrowings from the central bank, said Subir Gokarn, a deputy governor.
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