Bond yields, surrendering early gains, were trading flat on Monday after RBI Governor in an investor conference late on Friday underscored that inflation will remain the key focus of monetary policy. The governor also added that the economy needs to manage the process of dis-inflation with an eye on the economy, so that it doesn’t hamper growth.
On the global front, U.S. Treasury yields were steady on Friday after they briefly surged to their highest level since September following a strong jobs report, which caused investors to evaluate anew when the Federal Reserve is likely to begin paring back its bond-purchase program. Meanwhile, brent crude oil futures held near $112 a barrel on Monday, underpinned by upbeat economic data from the United States and China, the world's first and second largest oil consumers.
Back home, the new 10 year Government Stock 2023 were trading steady at its previous close of 8.85% on Friday.
The benchmark five-year interest rate swaps were trading flat at its previous close of 8.38% 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 each. The auction will be conducted on December 11, 2013 using 'Multiple Price Auction' method.
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