Mumbai: Bond yields rose on Tuesday after the Reserve Bank of India (RBI) increased the size of debt auctions for this week and the following to Rs150 billion each, from Rs120 billion.
At 9:24am, the benchmark 10-year bond yield was at 6.39%, above Monday’s close of 6.31%. It fell to a two-week low of 6.20% on Monday.
Dealers said a rise in US Treasury yields and gains in the global oil prices also put upward pressure on yields.
US Treasury debt prices fell on Monday as hopes the recession was easing drove up stocks and lured investors away from safe-haven government bonds.
Oil steadied around $59 a barrel on Tuesday after settling a day earlier at a six-month high on supply concerns from Nigeria and a key US refinery, as investors looked to equities and the dollar for further cues.