Bond yields remains steady on Monday

Bond yields traded steady on Monday as market awaits fresh triggers. Investors remained cautious as Reserve Bank of India Governor Raghuram Rajan said the government needed to put conditions in place for sustainable growth, without resorting to populist policies.

In the global market, U.S. Treasury yields edged higher on Friday after data showing an upward revision to industrial production in August supported a potential December Federal Reserve rate hike, while a lack of conviction capped the rise in yields. Furthermore, Oil prices slipped on Monday, wiping out some of the previous session's gains, as investors waited for China's third quarter gross domestic product figures.

Back home, the yields on new 10 year Government Stock were trading steady from its previous close at 7.56% on Friday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.63% from its previous close at 7.64% on Friday.

The Reserve Bank of India has announced the auction of 91-days and 182-days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on October 21, 2015 using 'Multiple Price Auction' method.