Bond yields were trading lower tracking lower crude prices after Goldman Sachs lowered its short-term price outlook. Meanwhile, the yields also edged tad lower tailing strength of Indian currency. On the macro-front, Indian rupee, appreciating for fourth consecutive session, was trading stronger on Monday on increased selling of the U.S. currency by exporters, while dollar’s weakness against basket of other major currencies also aided the sentiment
The yields edged up in the previous trading session on account of profit-booking activities as investors awaited Rs 14,000 crore debt sale auction later on Friday.
On the global front, U.S. Treasury debt prices climbed on Friday, with investors focusing on a surprising drop in U.S. average hourly wages and slumping oil prices that aggravated worries the global economy is sputtering. Meanwhile, global oil prices extended their slide on Monday as Goldman Sachs lowered its short-term price outlook, while refineries in Ohio and Pennsylvania were hit by fires over the weekend, curtailing demand for crude in the U.S.
Back home, the yields on new 10 year Government Stock 2023 was trading 2 basis points lower at 7.82% from its previous close of 7.84% on Friday.
The benchmark five-year interest rate swaps were trading 6 basis points lower at 6.99% from its previous close of 7.05% on Friday.
The Reserve Bank of India has announced the auction of 91 and 182 days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on January 14, 2015 using 'Multiple Price Auction' method.
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