Bond yields edged higher on Monday, after the Reserve Bank of India (RBI) announced yet another open market purchase of bonds. Investors also maintained cautious approach ahead of the Consumer Price Index-based inflation data for October scheduled to be released later today.
In the global market, U.S. Treasury yields rose on Friday, with two-year yields at a nine-year high as traders closed out some curve-flattener positions and dealers reduced their holdings of longer-dated debt following this week's auctions. Furthermore, Oil trading was cautious amid ongoing tensions in the Middle East and after a rising rig count in the United States suggested producers there are preparing to increase output.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.98% from its previous close of 6.96% on Friday.
The benchmark five-year interest rates were trading 3 basis points higher at 6.82% from its previous close of 6.79% on Friday.