Bond yields inch higher after four consecutive session of fall

Bond yields were trading higher as traders consolidated their positions after the yields hit an over four-month low on Friday, and fell for a fourth straight session. The yields also rose following report that the central bank is expected to issue a new 10-year bond later this month, which will be replacing the existing 8.83% bonds maturing in 2023 as the benchmark.

On the global front, U.S. Treasuries prices fell on Friday ahead of a $62 billion sale of new coupon-bearing government debt next week, though losses were capped as falling yields on European bonds made U.S. debt relatively attractive. Meanwhile, brent futures held steady above $108 a barrel on Monday as healthy Chinese export data and a solid U.S. jobs report revived hopes of steady growth in oil demand from the world's top two consumers.

Back home, the yields on new 10 year Government Stock 2023 were trading up 2 basis points at 8.53% from its previous close of 8.51% on Friday.

The benchmark five-year interest rate swaps were trading 3 basis points higher at 7.76% from its previous close of 7.73% on Friday.

The Reserve Bank of India (RBI) has announced the auction of 364 and 91 days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 8000 crore respectively. The auction will be conducted on June 11, 2014 using 'Multiple Price Auction' method

Eight State Governments have offered to sell 10 year securities by way of auction for an aggregate amount of Rs 4130 crore on June 10, 2014.