Bond yields, after taking a breather in the previous session, resumed its losing streak on Monday, on account of dovish comments by Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan, who underscored that he expects a fall in vegetable prices to likely ease the headline inflation and retail inflation to 6.5 percent and 9.20 percent respectively in December.
On the global front, U.S. stocks rose on Friday, capping the best week for major indexes in months as unexpectedly strong data on economic growth increased confidence that the recovery was accelerating. Meanwhile, brent crude hit a two-week high near $112 a barrel on Monday as internal strife in South Sudan threatened the country's oil output, adding to supply woes in Africa.
Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points lower at 8.77% from its previous close of 8.74% on Friday.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.36% from its previous close of 8.37% on Friday.
The Reserve Bank of India has announced the auction of 91 and 364 days Government of India Treasury Bills for notified amount of Rs 6,000 crore each. The auction will be conducted on December 24, 2013 using 'Multiple Price Auction' method.
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