Yields on government securities and corporate bonds edged lower even as Bond Street overcame fears of an open market operation (OMO) sale by the Reserve Bank of India. Yield on the erstwhile benchmark ten-year gilt fell by seven basis points to 5.88 per cent and that of the new ten-year gilt came off by four basis points to 5.93 per cent. The benchmark five-year corporate bond was dealt two basis points lower.
The erstwhile 7.40 per cent 2012 benchmark gilt opened at an yield of 5.961 per cent (Rs 110.15) and was last dealt at 5.888 per cent (Rs 110.70). The new benchmark 9.81 per cent 2013 gilt opened at 5.976 per cent (Rs 129.32) and was last dealt at 5.931 per cent (Rs 129.72). The long-dated 8.35 per cent 2022 gilt opened at an yield of 6.282 per cent (Rs 122.95) and was last dealt at 6.243 per cent (Rs 123.45).
Yield fall was pronounced in the medium tenor gilts than in long-dated gilts. Volumes in the gilts market was at Rs 8,600 crore as against previous day
