Bond yields trade flat on Tuesday

Bond yields traded flat on Tuesday after Finance Minister Arun Jaitley’s statement that the rolling out the ambitious Goods and Services Tax (GST) regime is ‘certainly’ doable in 2016 and added that he is in ‘continuous touch’ with the Congress party in a bid to persuade them to cooperate. He hope that in the next session (of Parliament), the GST will make headway.

In the global market, U.S. Treasuries prices rose on Monday in light and choppy trading after a solid two-year auction as falling oil prices stoked demand for longer-dated bonds. Furthermore, Crude oil prices remained under pressure on Tuesday as fears of slowing demand added to worries over near-record global production levels that have slashed prices by two-thirds since the middle of last year.

Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.76% on Monday.

The benchmark five-year interest rates were trading flat from its previous close at 7.74% on Monday.

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.