Bond yields were trading steady at its previous close of 7.82%, as the bond auction by RBI is putting pressure on yields. Further, the government plans to issue sovereign gold bonds worth Rs 15,000 crore in the second half of the current fiscal as it looks to curb demand for physical gold and raise funds through issue of such securities, also weighed on the sentiments.
In global markets, U.S. Treasury debt prices drifted higher on Friday, as investors sought safety in government bonds after a softer-than-expected U.S. housing report and amid a persistent downtrend in commodities and weakness on Wall Street. Furthermore, Oil prices slipped lower in early Asian trade on Monday after closing the previous session at their lowest level since March on renewed oversupply concerns after data showed U.S. drilling activity increased last week.
Back home, the yields on new 10 year Government Stock were trading steady at its previous close of 7.82%.
The benchmark five year yields were trading 1 basis point higher at 8.00% from its previous close of 7.99% on Friday.