Bond yields edged lower on Tuesday on account of value buying activities by participants. Sentiments got some support with NITI Aayog Vice Chairman, Arvind Panagariya’s statement that India’s growth rate is expected to accelerate to 8 per cent in the current financial year and the economy will surpass $3 trillion mark in less than five years. However, investors remained cautious ahead of the deadline for the debt payment by Greece to IMF which ends later today.
In the global markets, U.S. Treasuries market rallied on Monday, with benchmark yields falling to one-week lows, as investors parked money in U.S. safe-haven government debt on bets that a potential Greek exit from the euro zone could stress markets worldwide. Furthermore, Oil futures hovered below three-week lows on Tuesday after Greeks took to the streets to protest against austerity following a bank shutdown, keeping investors away from riskier assets and putting Brent crude on course for a second month of declines.
Back home, the yields on 10 year Government Stock was trading 3 basis points lower at 7.86% from its previous close of 7.89% on Monday.
The benchmark five year yields were trading down by 3 basis points at 8.05% from its previous close of 8.08% on Monday.
The Reserve Bank of India has announced the auction of 91-days 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 July 02, 2015 using 'Multiple Price Auction' method.