Bond yields traded flat on Tuesday as investors remained cautious with the report that the central bank will likely to announce a new 14-year paper to be auctioned later this week.
In the global market, U.S. Treasury yields rose on Monday as stock prices gained, reducing demand for safe haven bonds, before Friday's highly anticipated jobs report for April. Furthermore, Oil prices rose on Tuesday as the dollar slipped to an 18-month low against the yen, potentially spurring fuel demand, but gains were restricted by rising Middle East output that renewed concerns of a global supply overhang.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.44% on Monday.
The benchmark five-year interest rates were trading flat from its previous close at 7.47% 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 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on May 04, 2016 using 'Multiple Price Auction' method.
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