Bond yields were trading tad higher on Monday as traders move towards the new 10-year paper amidst tight liquidity condition. However, the trade was range-bound as traders wait for announcement on details of this week's debt auction, which usually takes place aftermarket trading hours on Monday.
On the global front, U.S. Treasury debt prices jumped on Friday, with long maturities getting the largest lift from investors exiting drooping stock markets and positioning portfolios ahead of a Federal Reserve policymakers' meeting next week. Meanwhile, Brent crude slipped near $108 a barrel on Monday as fighting between Israel and Hamas Islamist militants subsided in Gaza, but some analysts said falls may be limited.
Back home, the yields on new 10 year Government Stock 2023 was trading 1 basis point higher at 8.68% from its previous close of 8.67% on Friday.
The benchmark five-year interest rate swaps were trading steady at its Friday’s close of 7.89%.
The Reserve Bank of India has announced the auction of 182-days and 91-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 30, 2014 using 'Multiple Price Auction' method.