Bond yields remained steady on Monday as investors turned cautious as a rebound in the U.S. jobs data damped expectations of no immediate rate hikes by the Federal Reserve. Meanwhile, investors took profits ahead of retail inflation data due tomorrow.
In the global market, Short-dated U.S. Treasury yields edged higher on Friday after surprisingly strong U.S. jobs data raised expectations slightly for a Federal Reserve rate hike this year, while long-dated yields hovered near record lows on persistent concerns about global growth. Furthermore, Oil fell on Monday over signs that U.S. shale drillers have adapted to lower prices and on renewed signs of economic weakness in Asia.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.38% on Friday.
The benchmark five-year interest rates were trading 1 basis point at 7.22% from its previous close at 7.23% 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 July 13, 2016 using 'Multiple Price Auction' method.