Bond yields remained steady on Monday as the investors remained cautious ahead of the April-June gross domestic product (GDP) data which is due to be announced later in the day. The prices of the bonds are likely to rise on an expectation that central bank will cut interest rate in September.
In the global market, U.S. Treasuries prices fell on Friday, with most yields posting their biggest weekly rise in nine weeks as the Federal Reserve's No. 2 official suggested a September rate increase remained a possibility in the wake of global market turbulence this week. Furthermore, Oil prices fell in Asia on Monday as traders took profits, snapping gains last week that saw the biggest two-day rally in six years.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close of 7.77% on Friday
The benchmark five year yields were trading flat from its previous close of 7.89% on Friday
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 5,000 crore respectively. The auction will be conducted on September 02, 2015 using 'Multiple Price Auction' method.