Bond yields eased on Monday in line with their US counterparts, while a drop in global oil prices also aided the sentiment further. US Treasuries prices rose on Friday, helped by expectations of further monetary accommodation at a Federal Reserve policy meeting this week. Brent crude futures fell $1 a barrel on Monday on a stronger dollar and concerns that Greece's sovereign debt problem may turn into a full-blown banking crisis.
The yields on 10-year benchmark 7.80% - 2021 bonds were trading at 8.34%, lower from Friday’s close. The yield had ended at 8.36% on Friday, off 8.38% struck after the central bank announced a rate increase. India raised rates for the 12th time in 18 months on Friday and signaled more was to come, confounding expectations that it was coming to the end of its tightening cycle and putting it at odds with global peers focused on reviving weak demand.
The Reserve Bank of India has announced the auction of 364-day and 91-day Government of India Treasury Bills for notified amount of Rs 3,000 crore and Rs 7000 crore respectively. The auction will be conducted on September 21, 2011 using 'Multiple Price Auction' method.
