Bond yields rose a tad as a rally in Brent crude prices, weighed on the sentiment. Further, EU leaders’ agreement to support ailing euro zone banks also triggered selling of bonds, as this boosted the demand of risky asset class such as equities.
On the global front, US Treasury debt prices fell on Friday as a deal to let euro zone rescue funds be used to stabilize debt markets and bolster banks sapped demand for safe-haven US government bonds. Meanwhile, Brent crude fell towards $96 a barrel on Monday after weak factory data from top energy consumer China.
Back home, the yields on 10-year benchmark 8.79% - 2021 were trading 1 basis point higher at 8.19% from its previous close of 8.18% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.22% from its previous close of 7.20% on Friday.
The Reserve Bank of India has announced the auction of 91-day and 182-day Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 5000 crore respectively. The auction will be conducted on July 4, 2012 using 'Multiple Price Auction' method.
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