Bond yields were trading higher on Tuesday as bond buying continued for a second straight session, although trade looked consolidating around current levels in the absence of any immediate triggers. Nevertheless, the yields are expected to trade in tight range ahead of inflation data, which is scheduled to be released on Thursday.
On the global front, US Treasuries prices slipped on Monday in quiet trading, pressured by a $62 billion sale of new coupon-bearing government debt this week and steady risk appetite following a strong US jobs report last Friday. Meanwhile, brent futures rose above $110 a barrel on Tuesday, a day after posting their biggest daily percentage gain in nearly two months, on hopes of healthy demand growth from the United States and China - the world's top two oil consumers.
Back home, the yields on new 10 year Government Stock 2023 were trading up 3 basis points at 8.58% from its previous close of 8.55% on Monday.
The benchmark five-year interest rate swaps were trading steady at its previous close of 7.78% on Monday.
The Reserve Bank of India (RBI) has announced the auction of 364 and 91 days Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 8000 crore respectively. The auction will be conducted on June 11, 2014 using 'Multiple Price Auction' method
Eight State Governments have offered to sell 10 year securities by way of auction for an aggregate amount of Rs 4130 crore on June 10, 2014.
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