Bond yields edged sharply lower in early deals on Tuesday in absence of debt sale announcement in this week, easing concerns about supply, but somewhat sparking speculation over government’s high cash position.
On the global front, US treasuries prices fell on Monday on profit-taking after gains last week on weak U.S. data, with many investors still nervous about spikes in volatilities in major bond markets around the world. Meanwhile, brent crude prices dipped on Tuesday as Asia’s economies showed more signs of weakness, while US prices edged up on the back of US peak demand summer driving season.
Back home, the yields on 10 year Government Stock was trading 3 basis points lower at 7.87% from its previous close of 7.90% on Monday.
The benchmark five year swap rate was trading steady at Monday’s close of 7.15%.
The Reserve Bank of India has announced the auction of 182-day Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 9000 crore respectively. The auction will be conducted on May 20, 2015 using 'Multiple Price Auction' method.