Bond yields traded higher on Monday as market-participants remained on the sidelines after the Reserve Bank of India Governor Raghuram Rajan said during weekend that he won't continue to helm the central bank after his tenure ends on Sep. 4 2016.
In the global market, U.S. benchmark Treasury yields rose on Friday for the first time in nearly two weeks as investors reprised the odds that Britons will vote next week to exit the European Union, and as UK politicians halted campaigning on the referendum following the killing of member of parliament Jo Cox. Furthermore, Oil extended gains on Monday as a weaker dollar and easing worries over Britain's possible exit from the European Union helped support crude.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.52% from its previous close at 7.50% on Friday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.45% from its previous close at 7.40% 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 22, 2016 using 'Multiple Price Auction' method.