Bond yields have come off day’s high tracing rupee’s recovery as Finance Minister P Chidambaram prepares to issue details on the planned increase in non-essential import duties, later in the day. On the currency front, Rupee was trading at 61.03, stronger by 26 paise from its previous close of 61.29 on Monday.
On the global front, U.S. Treasury debt prices ended lower on Monday on light summer volume, with bond yields staying in a tight range ahead of Tuesday's release of the government's report on retail sales. Meanwhile, brent crude steadied under $109 per barrel on Tuesday following overnight gains that were underpinned by supply concerns in OPEC nation Libya, with investors looking ahead to U.S. economic data due later this week for more clear signals on the timing of stimulus cuts from the Federal Reserve.
Back home, the yields on 10-year 7.16% - 2023 bonds were trading 4 basis points higher at 8.34%, lower than session’s high of 8.37%, but higher from its previous close of 8.30%,
The Reserve Bank of India has announced the auction of 91 and 182 days Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 5000 crore respectively. The auction will be conducted on August 14, 2013 using 'Multiple Price Auction' method.
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