Bond yields crept higher after September inflation figures shot up to seven month high level, re-igniting fears of further rate hikes in offing. Adding to the headache of the policy makers, the annual rate of inflation, based on monthly WPI, stood at 6.46% (provisional) for the month of September, 2013 (over September, 2012) as compared to 6.10% (provisional) for the previous month and 8.07% during the corresponding month of the previous year
On the global front, Yields on Treasury bills maturing in late November and December jumped on Friday, as investors worried that any deal to increase the U.S. debt ceiling would kick the risks of a default down the road. Meanwhile, brent futures edged lower towards $111 per barrel on Monday after an unexpected decline in China's exports, with a looming deadline to get an increase in the U.S. debt ceiling adding to worries about the outlook for oil demand
Back home, the yields on 10-year 7.16% - 2023 bonds, were trading higher by 9 basis points at 8.58% from its previous close of 8.49% on Friday.
The Reserve Bank of India has announced the auction of 364 and 91 days Government of India Treasury Bills for notified amount of Rs 6,000 crore respectively. The auction will be conducted on October 15, 2013 using 'Multiple Price Auction' method.
