Bond yields traded steady on the release of January WPI data, which ebbed way below street expectation at -0.39% in January as compared to 0.11% in December on the back of sharp correction in oil prices. Additionally, the yields also were steady on prevailing caution on account of higher crude prices.
On the global front, US treasury yields rose on Friday on optimism that Greek and European negotiators will reach a deal over the terms of Greece’s bailout and after better than expected growth in Germany’s economy reduced demand for safe haven debt. Meanwhile, Oil prices steadied on Monday as Japan's economy emerged from recession and as strong demand for refined products translated into healthy orders for crude.
Back home, the yields on new 10 year Government Stock 2023 was trading steady at Friday’s close of 7.70%
The benchmark five-year interest rate swaps were trading 3 basis points higher at 6.93% from its previous close of 6.90% on Friday.
The Reserve Bank of India has announced the auction of 91 & 364 day 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 February 18, 2015 using 'Multiple Price Auction' method.