Bond yields traded lower as investors got support from with India will auction 48.2 billion rupees ($723 million) of debt quotas to foreign investors later in the day, enabling them to buy government securities.
In the global market, U.S. Treasury yields rose to three-week highs on Friday as investors prepared for the possibility that the Federal Reserve will hint next week that an interest rate hike is on the table for June. Furthermore, Oil prices fell on Monday as traders took profits after three weeks of gains and as a jump in the dollar late last week was priced into fuel markets.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at7.44% from its previous close at 7.45% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at7.46% from its previous close at 7.47% on Friday.
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 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on April 27, 2016 using 'Multiple Price Auction' method.