Bond yields edged lower on Tuesday on speculation funds released by maturing notes will boost demand for existing debt. There are some report that Rs 361.1 billion ($5.6 billion) of securities matured on June 8, with another Rs 330.7 billion due for redemption on June 13, 2015. However, there are some worries about Greece debt and the US job report which have reinforced expectations that the Federal Reserve could raise interest rates as early as September.
In the global markets, U.S. Treasurys yields fell on Monday with benchmark yields retreating from seven-month highs as concerns about Greece and its ability to avert default renewed safehaven demand for low-risk government debt. Meanwhile, Oil prices edged higher in Asia on a weaker dollar but the gains were capped by concerns about tepid Chinese demand and OPEC’s decision to maintain its current output levels.
Back home, the yields on 10 year Government Stock was trading 2 basis points lower at 7.78% from its previous close of 7.80% on Monday.
The benchmark five year yields were trading down by 5 basis points at 7.97% from its previous close of 8.02% on Monday.
The Reserve Bank of India has announced the auction of 91-days and 364-days Government of India Treasury Bills for notified amount of Rs 9,000 crore and Rs 6000 crore respectively. The auction will be conducted on June 10, 2015 using 'Multiple Price Auction' method.