Bond yields trade flat on Tuesday

Bond yields traded flat on Tuesday amid lack of fresh triggers. Meanwhile demand was muted after an auction of unutilised limit for foreign investors in sovereign papers remained partially subscribed.

In the global market, U.S. Treasury yields rose to two-week highs on Monday as a surge in stocks and oil prices reduced demand for safe-haven U.S. government debt and U.S. economic data showed short-term inflation could be rising. Furthermore, Crude oil futures held near six-month highs in early Asian trading as the market focused on supply disruptions that prompted long-time bear Goldman Sachs to issue a bullish assessment on near-term prices.

Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.45% on Monday.

The benchmark five-year interest rates were trading flat from its previous close at 7.41% 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 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on May 18, 2016 using 'Multiple Price Auction' method.