MUMBAI: Government bond yields rose on Monday ahead of fresh debt supplies this week with sentiment further dampened as the central bank did not announce issuance of a floating rate bond as part of Friday's bond sale.
At 2:28 p.m., the yield on the most traded 6.35 percent bond maturing in 2020 was at 7.64 percent, above its previous closing of 7.57 percent.
The yield on the 6.90, 2019 bond eased to 7.65 percent, below its previous closing of 7.70 percent.
The central bank will auction 54 billion rupees of state loans on Tuesday and 85 billion rupees of treasury bills on Wednesday ahead of a 100-billion-rupee bond sale on Friday.
The central bank said late on Friday that it will auction 40 billion rupees of 7.32 percent 2014 bonds, and 30 billion rupees each of 6.90 percent 2019 and 8.28 percent 2032 bonds on Jan. 8.
Dealers said the auction of the 6.90, 2019 bond caused shifting of positions away from the 6.35 percent, 2020 bond.
Traders were also disappointed as most were expecting issuance of a floating rate bond instead of a 10-year paper.
