Bond yields were treading water in absence of any fresh trigger, as traders’ preferred being on the sidelines ahead of RBI’s second quarterly monetary policy review on October 30. Further, drop in the prices of Brent crude were also preventing the uptick in bond yields.
On the global front, US 10-year treasuries edged lower in Asian trade on Monday as profit-taking emerged in the wake of their rally on Friday, when safe haven debt gained a lift as equities fell on disappointing corporate earnings. Meanwhile, Brent crude edged up towards $111 a barrel on Monday after a four-day decline spurred by worries over a fragile global economy, with supply risks supporting prices as violence in the Middle East intensified.
The yields on 10-year benchmark 8.79% - 2021 were trading steady at its previous close of 8.13%.
The benchmark five-year interest rates were trading unchanged at its previous close of 6.97%.
The Reserve Bank of India has announced the auction of 91-day and 182-day Government of India Treasury Bills for notified amount of Rs 5,000 crore each. The auction will be conducted on October 23, 2012 using 'Multiple Price Auction' method.
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