Bond yields traded lower on Monday as investors turned optimistic on the hope that Reserve Bank of India (RBI) will cut rates in its monetary policy review on April 5 2016. Meanwhile, the Nikkei purchasing managers’ index (PMI) survey showed that the India’s manufacturing growth is at an eight month high of 52.4 after the 51.1 points reading in February.
In the global market, U.S. short-dated Treasury yields rose on Friday from one-month lows in choppy trading as stronger-than-expected labor and factory data in March supported the view the Federal Reserve would raise interest rates later this year. Furthermore, Oil prices fell in early trading on Monday as the chances of Middle East producers agreeing to curb overproduction appeared to fade, while U.S. output remains stubbornly high.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.44% from its previous close at 7.46% on Thursday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.48% from its previous close at 7.52% on Thursday.
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 April 06, 2016 using 'Multiple Price Auction' method.