Bond yields edged higher on Monday, as global rating agency Standard and Poor's (S&P) kept its India rating unchanged at the lowest investment grade of ‘BBB-’, with a stable outlook.
In the global market, U.S. Treasury yields rose on Friday but stayed within the tight range they have held for the past week-and-a-half as investors focused on the inflation outlook. Furthermore, U.S. oil prices dipped, easing from two-year highs on the prospect of increased U.S. output, although global markets were slightly better supported by expectations an OPEC-led supply cut will be extended.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.03% from its previous close of 7.00% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.89% from its previous close of 6.88% on Friday.