Bond yields were trading steady as the absence of a scheduled bond auction this week supported the market with rise in global oil prices too limiting the buying interest.
On the global front, US Treasury debt prices rose on Friday as lingering worries about Europe's debt crisis and concerns over soaring oil prices stoked safe-haven demand for bonds, giving longer-dated issues their best week in four weeks. On unusually light volume, benchmark 10-year Treasuries finished up 4/32 in price to yield 1.98 percent, down from 2 percent late Thursday. They touched a 2.08 percent yield on Tuesday in reaction to the Greece bailout.
Meanwhile, Brent crude edged lower on Monday and snapped five days of gains, but stayed near 10-month highs above $125 due to concerns over supply disruption as tension rose over Iran's disputed nuclear programme.
The yields on 10-year benchmark 8.79% - 2021 bonds were steady at its previous close of 8.23% on Friday.
The benchmark five-year interest rate swaps were at 7.42% compared with previous close of 7.43% on Friday.
The Reserve Bank of India has announced the auction of 182-day and 91-day Government of India Treasury Bills for notified amount of Rs 4,000 crore and Rs 8000 crore respectively. The auction will be conducted on February 29, 2012 using 'Multiple Price Auction' method.