Bond yields traded lower on Monday after India’s fiscal situation was retained well within the control and showed improvement in April-September period which stood at Rs 3.78 lakh crore or 68.1 percent of the Budget estimate (BE) for the whole year pegged at Rs 5.55 lakh crore or 3.9 percent of GDP.
In the global market, U.S. Treasuries prices rose on Friday, with benchmark yields retreating from one-month peaks as soft domestic and overseas data renewed traders' outlook on tepid global growth and month-end buying boosted longer-dated Treasuries prices. Furthermore, Oil prices fell in Asian trading hours on Monday as analysts expected weaker demand from China in upcoming months.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.63% from its previous close at 7.64% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.66% from its previous close at 7.68% 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 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on November 04, 2015 using 'Multiple Price Auction' method.