Bond yields edged higher tailing the spurt in global crude oil prices on the back of escalating tensions between Russia and Ukraine after Russian President Vladimir Putin declared he had the right to invade his neighbour. However, weak GDP data capped the gains of bond yields, though traders wait for further clarity from the central bank in terms of rates which at this point are expected to remain elevated in the near-term.
On the global front, U.S. Treasury debt prices pared most of their losses on month-end buying on Friday as investors balanced their portfolios. The prices also rose after a report on Friday showed the pace of business activity in the U.S. Midwest rose slightly in February, beating expectations and snapping a three-month run of slower growth.
The yields on new 10 year Government Stock 2023 were trading 1 basis point higher at 8.87% from its previous close of 8.86% on Friday.
The benchmark five-year interest rate swaps were trading 1 basis point higher at 8.55% from its previous close of 8.54% on Friday.
The Reserve Bank of India has announced the auction of 91-days and 364 days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6000 crore respectively. The auction will be conducted on March 05, 2014 using 'Multiple Price Auction' method