Bond yields traded higher on Monday after the report that India is expected to clock 7.4 per cent growth rate this fiscal with a downside risk amid weak exports, slow pace of structural reforms and investment spending.
In the global market, U.S. Treasury debt yields jumped on Friday, taking benchmark 10-year yields to a two-week high, after China cut interest rates for the sixth time in less than a year and helped fuel a global rally in equities. Furthermore, Crude oil prices edged down in early Asian trading on Monday as a weak demand outlook means oversupply will likely remain in place for months and as speculators cut their bets on rising prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.59% from its previous close at 7.58% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.67% from its previous close at 7.65% 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 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on October 28, 2015 using 'Multiple Price Auction' method.