Bond yields traded lower on Monday, as the quantum of a fresh supply of state debt is lower than scheduled, boosting an already buoyant sentiment.
In the global market, U.S. Treasury yields slipped on Friday in choppy trading although the outlook remained upbeat given generally solid U.S. economic data over the last few weeks that support expectations of at least one interest rate hike this year. Furthermore, Crude prices inched down, staying not far from two-month lows hit in the previous session, amid worries over a global oil glut.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.23% from its previous close at 7.25% on Friday.
The benchmark five-year interest rates were trading flat from its previous close at 7.10% 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 22, 2016 using 'Multiple Price Auction' method.