Change of price and yield of the benchmark 10-year gilt paper
|
Date |
Yield |
Price |
% change in price |
|
5-Dec-13 |
9.108% |
87.82 |
|
|
24-Nov-16 |
6.229% |
105.39 |
20.007% |
|
12-Sep-18 |
8.130% |
93.79 |
-11.007% |
|
23-Jul-20 |
5.800% |
99.87 |
6.483% |
|
14-Jun-22 |
7.581% |
92.99 |
-6.889% |
|
26-Oct-23 |
7.360% |
98.71 |
6.154% |
From the above table, it can be seen that the 10-year g-sec price rose by 20% when yield fell to 6.229% from 9.108% between 2013 to 2016. After that price fell by 11% when yield rose to 8.13% between 2016 to 2018. From 2018 to 2020, g-sec price rose by 6.48% when yield fell to 5.18%. Since 2022, g–sec price rose by 6.15% as yield fell to 7.36%.
Government bonds, SDL and OIS yield movements
During the past week, there were several notable changes in bond yields:
The yield for the 10-year benchmark 7.18% 2033 bond yield stood unchanged at 7.36%. Similarly, the 7.26% 2033 bond yield remained unchanged at 7.40%. The 7.06% 2028 bond's yield lost marginally by 1 basis point to 7.35%. In the same line, the long-term paper, represented by the 7.25% 2063 bond, its yield stood steady at 7.53%.
The spread between the 10-year and 5-year bonds stood flat at 1 basis point from 0 basis point difference in the previous week. The spread between the 15-year benchmark and the 10-year benchmark stood flat at 10 bps from 11 basis points. Additionally, the spread between the 30-year benchmark and the 10-year benchmark flat at 16 basis points from the prior 17 basis points over the week.
In terms of the 10-year SDL auction, the average cutoff yield rose to 7.70% as compared to 7.67%, while the rose declined to 32 basis points from 34 basis points.
Lastly, in the Overnight Indexed Swap (OIS) rates, the 1-year OIS yield fell to 7% from 7%, while the 5-year OIS yield decreased by 6 bps to 6.70%.
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