Bond yields traded lower on Monday after weaker-than-expected job gains in the world's largest economy reduced bets on the immediate interest rates hike in U.S. Friday's data in US showed nonfarm payrolls increased by only 38,000 jobs last month - the fewest in more than 5-1/2-years - confounding forecasts for a rise of 164,000 jobs.
In the global market, U.S. Treasury debt yields tumbled on Friday, as prices rallied after data showed the world's largest economy created the fewest jobs in more than five years in May, quashing expectations that the Federal Reserve would raise interest rates this summer. Furthermore, oil prices rose on Monday, lifted by a plunge in the U.S.-dollar that could spur demand, just as ongoing attacks on oil infrastructure in Nigeria tighten supplies.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.47% from its previous close at 7.48% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.42% from its previous close at 7.44% 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 June 08, 2016 using 'Multiple Price Auction' method.