Bond yields trades lower on Tuesday

01 Sep 2015 Evaluate

Bond yields traded lower on Tuesday as investors searched for safe-haven assets after heavy losses in equities markets. Weak microeconomic data and continuous uncertainty over China and Fed rate increase, keeps the investors away from domestic stock markets.

In the global market, U.S. Treasuries prices fell on Monday after lower U.S. oil production and OPEC's readiness to talk with other producers heightened inflation fears, while weekend comments from the Federal Reserve vice chair hurt shorter-dated prices. Furthermore, Oil prices fell 3 percent in Asian trade on Tuesday, with investors covering short positions and taking profits after Brent and U.S. crude soared more than 8 percent in the previous session.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.77% from its previous close at 7.78% on Monday.  

The benchmark five year yields were trading 2 basis points lower at 7.89% from its previous close at 7.91% 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 5,000 crore respectively. The auction will be conducted on September 02, 2015 using 'Multiple Price Auction' method.

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