Bond yields edged higher on Monday owing to lower demand from corporates and banks. Meanwhile, India’s inflation on wholesale level also softened slightly in the month of March, aided by fall in prices of food articles, mainly pulses and vegetables.
In the global market, the U.S. Treasury yield curve hovered at its lowest level in more than a decade on Friday, as short-dated yields rose more than longer-dated ones this week on expectations of further interest rate increases from the Federal Reserve. Furthermore, oil prices fell after U.S. drilling activity rose and fears waned about escalating tensions in the Middle East following air strikes on Syria over the weekend.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.44% from its previous close of 7.43% on Friday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.38% from its previous close of 7.35% on Friday.