Bond yields were trading flat as globally risk averse sentiment was weighed against the trader’s cautious stance ahead of RBI’s mid-quarterly monetary policy review on July 31, 2012.
On the global front, US 10-year Treasuries spurted in Asian trade on Monday, sending yields to historic lows, as heightened fears about Spain's ability to stave off a sovereign bailout prompted investors to seek refuge of safe-haven fixed income assets. Meanwhile, Brent crude slipped to $105 per barrel on Monday as economic concerns fanned qualms over repercussions on oil demand in the region. Riskier assets fell on Monday after tiny Murcia was on course to become the second region in Spain, the euro zone's fourth-largest economy, to request financial assistance from the central government.
Back home, the yields on 10-year benchmark 8.79% - 2021 inched lower by 1 basis point at 8.06% from its previous close of 8.07% on Friday.
The benchmark five-year interest rate was trading 5 basis points lower at 6.87% from its previous close of 6.92%.
The Reserve Bank of India has announced the auction of 91 and 364 day Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 5,000 crore respectively. The auction will be conducted on July 25, 2012 using 'Multiple Price Auction' method.
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