Bond yields traded lower on Tuesday after expectations mounted that the country’s yet-to-be-named new central bank chief will be more aggressive in cutting interest rates. Meanwhile investors awaited release of retail inflation data due after market hours today
In the global market, U.S. Treasury yields rose on Monday after Japan prepared a new round of stimulus, boosting stocks and reducing demand for safe-haven U.S. bonds, and after the U.S. government sold new three-year notes to tepid demand. Furthermore, Oil prices remained near two-month lows on Tuesday as financial traders lost confidence in a recent price rally, switching positions in anticipation of lower prices.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.32% from its previous close at 7.38% on Monday.
The benchmark five-year interest rates were trading 5 basis points at 7.18% from its previous close at 7.23% 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 July 13, 2016 using 'Multiple Price Auction' method.