Bond yields traded higher on Monday amid reports that RBI governor Rajan has signaled the central bank won’t cut interest rates at its review next month. Investors turned cautious with Prime Minister Narendra Modi seeking the Opposition's cooperation in the passage of GST Bill, as the Opposition is set to target the government over developments in Arunachal Pradesh and Kashmir during parliament's monsoon session starting today.
In the global market, U.S. Treasury prices trimmed losses in late U.S. trading on Friday as the Turkish military said it had taken power in the country, kindling safe-haven demand for low-risk assets on worries about a large shift in power in the Middle East. Furthermore, Oil prices were little changed on Monday as traders shrugged off the impact of Friday's attempted coup in Turkey.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at7.28% its previous close at 7.27% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.13% from its previous close at 7.11% 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 July 20, 2016 using 'Multiple Price Auction' method.