Bond yields traded higher on Monday as investors remained cautious with the global rating agency Moody's statement that that India's economic exposure to external risks has gone up during the past seven months.
In the global market, U.S. Treasuries prices slumped on Friday as resurgence in oil and stock prices that had been battered by fears over slowing global growth and a glut of crude sparked a fresh wave of selling of safe-haven government debt. Furthermore, Crude oil futures extended gains following a surge at the end of last week on short-covering and fuel demand triggered by freezing weather in parts of the northern hemisphere.
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 flat from its previous close at 7.66% 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 6,000 crore respectively. The auction will be conducted on January 27, 2015 using 'Multiple Price Auction' method