Bond yields traded higher on Monday as investors remained cautious ahead of the consumer price index (CPI), due later in the day and interest rate decision by the Federal Reserve this week. Meanwhile, the country’s wholesale inflation which have been in negative territory for thirteen months now, eased a bit with the wholesale price index coming in at - 1.99 percent in November compared to -3.81 percent in October and versus a forecast of -2.59 percent.
In the global market, Yields on long-dated U.S. Treasury debt declined to multi week lows on Friday, as an extended drop in oil prices and weak stock markets spurred investors to seek the relative safety of government bonds. Furthermore, Crude oil futures slipped in early Asian trade, adding to a slump on Friday following a forecast from the International Energy Agency (IEA) that the global glut of oil is likely to deepen next year.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.78% from its previous close at 7.77% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.75% from its previous close at 7.76% 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 December 16, 2015 using 'Multiple Price Auction' method.