Bond yields traded higher on Tuesday as investors remained on sidelines ahead of the Railway Budget that will be on February 25. Sentiments remained down-beat on report that exports of over half of the sectors, out of the 30 closely monitored by the Commerce Ministry, were in the negative zone in January due to a fall in global prices and demand.
In the global market, U.S. Treasury prices ended lower on Monday as rising stock and oil prices reduced demand for safe haven debt, and before the government is due to sell $88 billion in new short- and intermediate-dated debt this week. Furthermore, Oil prices dipped slightly on Tuesday after posting strong gains the previous session on the back of an expected drop in U.S. production.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.79% from its previous close at 7.77% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.84% from its previous close at 7.82% on Monday.
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 February 24, 2015 using 'Multiple Price Auction' method.