Bond yields lower; cash dearer at quarter end

The Government bond yields inch lower in early trades on Monday, taking cues from lower global crude oil prices and US Treasury yields.

The benchmark 10-year bond yield was at 8.68 per cent versus Friday's close of 8.71 per cent.

Call rates rose to 10/10.05 per cent from 9.45/9.50 pct Friday close, reflecting reluctance on part of banks to lend during quarter end, as lenders prefer to hold higher capital for the balance sheet closing.

Bond dealers are waiting to see whether the RBI will announce an open market operation to buy debt during the week after the central bank's assurance on liquidity.

June-quarter current account deficit due at 1130 GMT likely to show deficit widened from March quarter. * Global crude oil prices fall amid declining US, Iran tensions.

US Treasuries prices rose on Friday, driven by safe-haven demand on concerns about the implications of a possible US government shutdown.