Bond yields edged higher on Monday after Urjit Patel’s appointment as the new governor of the RBI will reinforce the view that the inflation hawk will persist with his strident anti-inflation stance.
In the global market, U.S. Treasury prices fell on Friday as traders booked profits in advance of government debt auctions next week and a marquee annual meeting of global central bankers at which Federal Reserve Chair Janet Yellen is scheduled to speak. Furthermore, Oil prices fell as analysts doubted upcoming producer talks would be able to rein in oversupply, saying that Brent would likely fall back below $50 a barrel as August's more than 20-percent crude rally looks overblown.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.15% from its previous close of 7.10% on Friday.
The benchmark five year yields were trading 4 basis points higher at 7.07% from its previous close of 7.03% on Friday.