Bond yields recede tracing surge of US bonds and lower brent crude prices

Bond yields were trading lower on the back of surge of US counterparts and lower Brent crude prices. Traders will now eye the services PMI and rupee movement for intra-day cues. On the currency front, Indian rupee, extending its strength to third consecutive session, was trading near 60/$ level tailing the recovery of local equity markets after five session of fall. Besides, dollar selling by exporters and banks and increased capital inflows also aided the sentiment of Indian currency. On the global front, yields on US 30-year bonds dropped to their lowest in more than 10 months on Friday, falling for a fourth straight session as concerns about Russia and Ukraine overshadowed an upbeat US employment. Meanwhile, Brent crude slipped towards $108 a barrel on Monday after fresh data showed China's manufacturing sector contracted for a fourth consecutive month in April, although increasing tension in Ukraine prevented further losses. Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points lower at 8.78% from its previous close of 8.81% on Friday. The benchmark five-year interest rate swaps was trading 1 basis point lower at 8.32% from its previous close of 8.33% on Friday. The Reserve Bank of India has announced the auction of 91 and 182 days Government of India Treasury Bills for notified amount of Rs 9,000 crore and Rs 6000 crore respectively . The auction will be conducted on May 7, 2014 using 'Multiple Price Auction' method.