Bond yields edged lower on buying spurred by domestic banks looking to shore up valuations on last day of the financial year. The yields have also been edging lower on on speculation of government not immediately raising foreign investment limit in government bonds.
On the global front, US treasury debt prices were mostly little changed on Monday, with longer dated maturities giving back some gains last week as equity markets rose on signs china was moving to bolster its massive economy. Meanwhile, Oil futures extended losses on Tuesday as Iran and six world powers ramped up the pace of negotiations to reach a preliminary deal that could ease sanctions and allow more Iranian crude onto world markets.
Back home, the yields on 10 year Government Stock was trading 2 basis points lower at 7.74% from its previous close of 7.76% on Monday.
The benchmark five-year interest rate swaps was trading 2 basis points lower at 7.00% from its previous close of 7.02% on Monday.
The Reserve Bank of India will conduct 8 day Term Repo auction for a notified amount of Rs 20,000 crore on March 31, 2015 (Tuesday). The auction will be conducted between 12.00 pm and 12.30 pm as per the revised guidelines on Term Repo Auctions issued on February 13, 2014.