Bond yields were treading water in absence of fresh triggers, with traders now watching global crude oil and rupee for intra-day direction. On the currency front, Indian rupee extending its depreciating streak for yet another session on Monday was trading around its four month low on continued dollar demand from importers.
On the global front, US Treasuries prices rose on Friday as data showing weakness in U.S. business investment in March supported the view that it is unlikely the Federal Reserve will signal next week it is close to raising interest rates. Meanwhile, Brent crude held near four and half month high above $65 a barrel on Monday, supported by concerns about fighting in Yemen disrupting Middle East supplies and signs that US shale output may have started to decline.
Back home, the yields on 10 year Government Stock was trading steady at Friday’s close of 7.79%
The benchmark five year swap rate was trading steady at its Friday’s close of 7.10%.
The Reserve Bank of India will conduct 3 day variable rate repo auction for a notified amount of Rs 10,000 crore on April 27, 2015. The auction will be conducted between 12.30 pm and 1.00 pm as per the revised guidelines on Term Repo Auctions issued on February 13, 2014.