Bond yields trade marginally lower on Monday

Bond yields traded marginally lower on Monday after World Bank chief economist Kaushik Basu indicated that the bank may revise its GDP growth projection for India after it goes for a stock-taking in a few months. He also added that the recession in Brazil and Russia and slowdown in China have made India the leading economy in terms of growth prospects for the first time this year.

In the global market, US long-dated Treasury yields fell on Thursday after hitting one-week highs in the previous session, as traders neutralized positions on caution ahead of the Christmas holiday and year-end. Furthermore, Crude oil futures fell on Monday, in line with a weak trend in Asian trade, as speculators cut down their bets.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.73% from its previous close at 7.74% on Wednesday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.72% from its previous close at 7.73% on Wednesday.

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 December 30, 2015 using 'Multiple Price Auction' method.