Bond yields were treading water in early deals as investors largely stay on the sidelines in the absence of any fresh triggers. The 10-year paper is seen moving in an 8.82 to 8.89 percent range during the session. Dealers await details of this week's debt sale due to be announced post market hours. The 10-year benchmark bond yield fell the most in a single-day in three months on Thursday after the central bank fully sold $3.31 billion worth of bonds on offer, accomplishing the country's biggest debt auction.
On the global front, U.S. Treasuries prices fell on Thursday as data pointed towards a strengthening economy, and as traders prepared for $96 billion in new coupon-bearing supply next week. Meanwhile, Brent futures dropped towards $109 a barrel on Monday as investors took profits after steep gains, but uncertainty surrounding the crisis in Ukraine checked the decline.
Back home, the yields on new 10 year Government Stock 2023 were trading 1 basis point up at 8.86% from its previous close of 8.85% on Thursday.
The benchmark five-year interest rate swaps steady at 8.44 percent, while the one-year rates were trading 1 basis point lower at 8.57% from its previous close of 8.58% on Thursday.
The Reserve Bank of India has announced the auction of 91 and 182-days Government of India Treasury Bills for notified amount of Rs 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on April 23, 2013 using 'Multiple Price Auction' method.