Bond yields edged lower in range-bound trade on Monday tracking a fall in global crude oil prices. Nevertheless, the yields are expected to be range-bound until the Union budget on 10 July amidst widespread expectation that the Narendra Modi-led government would push through reforms and take steps to rein-in fiscal deficit..
On the global front, U.S. Treasuries' prices turned lower on Friday after steady gains earlier in the week, fuelled by data suggesting economic growth in America may be slower than policymakers believe. Meanwhile, Brent futures dipped towards $113 a barrel on Monday, adding to last week's fall as fears of a disruption to supplies from Iraq eased after government forces launched a pushback against a Sunni militant takeover of large areas of the country.
Back home, the yields on new 10 year Government Stock 2023 were trading 2 basis points lower at 8.73% from its previous close of 8.75% on Friday.
The benchmark five-year interest rate swaps were trading steady at Friday’s close of 7.91%.
The Reserve Bank of India has announced the auction of 91 days and 182-days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 9000 crore respectively. The auction will be conducted on July 02, 2014 using 'Multiple Price Auction' method.