Bond yields were treading water as markets await April-June GDP data, which would be crucial for direction. A number of economists' expect gross domestic product growth to be around 5.5 percent for the current fiscal year in Asia's third-largest economy. However, a number sub 5 percent is expected to the push the 10-year yield towards 8.10 percent.
On the global front, US 10-year Treasuries were stuck near its three-week low level in Asian trade as market players looked for more details of likely policy support in the United States and Europe. Meanwhile, Brent crude slipped towards $112 a barrel on Thursday after oil facilities in the Gulf of Mexico were largely secured from storm damage, however, maintenance at North Sea fields and a possible strike in Norway's oil sector limited the losses.
The yields on 10-year benchmark 8.79% - 2021 were trading steady at its previous close of 8.18%.
The benchmark five-year interest rates were trading 1 basis point higher at 7.13% from its previous close of 7.12% on Monday.
The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on August 31, 2012, which include (i) '8.19 percent Government Stock 2020' for a notified amount of Rs 4,000 crore (nominal) through price based auction; (ii) '8.33 percent Government Stock 2026' for a notified amount of Rs 7,000 crore (nominal) through price based auction; (iii) '8.28 percent Government Stock 2032' for a notified amount of Rs 2,000 crore (nominal) through price based auction; and (iv) '8.83 percent Government Stock 2041' for a notified amount of Rs 2,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on August 31, 2012 (Friday).
