Bond yields edged higher on Monday on account of profit-booking activities after previous session’s rally. Investors failed to draw any sense of relief with the Finance Minister Arun Jaitley’s statement that India's economic growth is expected to improve despite unfavorable global winds as the government continues with several reform programmes.
In the global market, U.S. Treasury yields fell on Friday, extending the previous day's declines after the Federal Reserve kept interest rates unchanged Thursday and doubts grew as to whether it would tighten policy at all this year. Furthermore, Oil prices edged up in early trading in Asia on Monday as U.S. drilling slowed.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.70% from its previous close at 7.69% on Friday.
The benchmark five year yields were trading 1 basis point higher at 7.85% from its previous close at 7.84% on Friday.
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 9,000 crore and Rs 5,000 crore respectively. The auction will be conducted on September 23, 2015 using 'Multiple Price Auction' method.