Bond yields were trading steady at its previous close of 7.79%, as market awaits fresh triggers even as traders say any further spike in global oil prices may push up yields. Meanwhile, Tax-free bonds are set for a comeback in the next few months, with the government giving a nod to state-owned Indian Railway Finance Corporation and National Highways Authority of India to sell these.
On the global front, U.S. Treasury yields rose on Friday after data showed that U.S. consumer prices rose for a second straight month in March, erasing an earlier fall when German government debt yields plunged to new lows. Meanwhile, U.S. crude futures rose around 1 percent on Monday to above $56 a barrel on the back of continued turmoil in Yemen and worries over lower U.S. oil output.
Back home, the yields on 10 year Government Stock was trading steady at its previous close of 7.79%.
The benchmark five year swap rate was trading 1 basis point higher at 7.09% from its previous close of 7.08% 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 April 22, 2015 using 'Multiple Price Auction' method.