Bond yields traded flat on Monday as investors slowed purchases and kept their eyes on key macroeconomic data i.e. consumer price index (CPI) and inflation based on the wholesale price index (WPI) for May to be released today and tomorrow, respectively.
In the global market, US Treasury yields fell to four-month lows on Friday, as European sovereign debt yields plunged on concerns about a potential British exit from the European Union and global growth. Furthermore, Oil prices fell on Monday, pulled down by rising economic concerns in Asia and a related strengthening in the U.S. dollar, which makes fuel imports for countries using other currencies more expensive.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.49% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.41% from its previous close at 7.40% on Friday.
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 June 15, 2016 using 'Multiple Price Auction' method.