Bond yields edged higher on Monday ahead of the Reserve Bank of India’s (RBI) auction of 21 days Government of India Cash Management Bills (CMB) under the Market Stabilisation Scheme (MSS) for a notified amount of Rs 500 billion.
In the global market, U.S. Treasury yields pulled back from 27-month peaks scaled mid-month following Friday’s release of US economic indicators that included strong housing and consumer confidence data but also numbers that pointed to slower household income. Furthermore, oil prices rose as traders created fresh positions amid pickup in domestic demand at the spot market. Further, tight supplies from the producing regions too fuelled the uptrend.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.57% from its previous close of 6.54% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.71% from its previous close of 6.70% on Friday.