Bond yields traded lower after the Finance Ministry announced repurchase of 1.44 per cent Inflation Indexed Government Stock-2023 through reverse auction for an aggregate amount of Rs 3,298.72 crore on March 28, a move aimed at infusing liquidity into the markets.
In the global market, U.S. Treasury yields ended higher in light trading on Thursday as investors continued to evaluate when the Federal Reserve is next likely to raise interest rates. Furthermore, Oil prices rose in early Asian trading on Monday after a three-day break, but volumes were tiny as a number of markets remain on holiday for Easter.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.50% from its previous close at 7.51% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.62% from its previous close at 7.65% on Wednesday.
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 March 02, 2016 using 'Multiple Price Auction' method.