Bond yields edged higher on Monday, after the Reserve Bank of India announced a surprise open market sale of debt this week.
In the global market, U.S. Treasury yields rose on Friday as inflation data was not seen as weak enough to delay the Federal Reserve’s expected path on interest rate hikes, and as investors worried about less accommodative central banks in Europe. Furthermore, Oil prices edged up, supported by the first fall in U.S. drilling activity in months, although rising output from OPEC despite a pledge to cut supplies capped gains.
Back home, the yields on new 10 year Government Stock were trading 8 basis points higher at 6.59% from its previous close of 6.51% on Friday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.85% from its previous close of 6.74% on Friday.