Bond yields edged higher on Monday after the Reserve Bank of India announced that it will auction long-duration Treasury Bills over the next four weeks, starting today. However, a relentless fall in U.S. Treasury yields amid ongoing geopolitical uncertainty may support demand for debt. Meanwhile, the inflation in the country on wholesale level softened in the month of March 2017, on the back of easing fuel and manufactured item prices. According to the latest data released by the government, the wholesale price inflation (WPI) stood at 5.70% in March as against 6.55% in the previous month and (-) 0.45% during the corresponding month of the previous year.
In the global market, U.S. Treasury yields fell on Thursday, with benchmark yields hitting near five-month lows as President Donald Trump's favorable view of low interest rates intensified a bond market rally that was underpinned by geopolitical worries. Furthermore, crude oil futures fell slightly in quiet trading, after a three-day Easter break, as investors digested a third consecutive weekly gain in prices along with North Korea's failed missile launch on Sunday.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.85% from its previous close of 6.82% on Thursday.
The benchmark five-year interest rates were trading 4 basis points higher at 6.99% from its previous close of 6.95% on Thursday.