Bond yields trade flat on Tuesday

Bond yields remained steady on Tuesday as marketmen await fresh triggers. Meanwhile, investors patiently were waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates.

In the global market, U.S. Treasury yields slipped on light buying on Monday as signs of slowing U.S. economic growth stoked uncertainty about the timing of interest rate increases from the Federal Reserve. Furthermore, Oil prices fell in early Asian trade on Tuesday as concerns mount that a rally since January is fizzling out, while analysts forecast another rise to record levels for U.S. crude stockpiles.

Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.50% on Monday.

The benchmark five-year interest rates were trading 2 basis points higher at 7.63% from its previous close at 7.61% on Monday.

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 6,000 crore respectively. The auction will be conducted on March 02, 2016 using 'Multiple Price Auction' method.