Bond yields edged higher on Monday on account of lower demand from corporates and banks. However, losses remained capped with Reserve Bank of India (RBI) Governor Urjit Patel’s statement that India’s real GDP growth is expected to expand at 7.4 per cent in 2018-19, with risks evenly balanced. HE added that several factors are expected to help accelerate the pace of growth in 2018-19.
In the global market, the 10-year Treasury yield reached its highest level since March 21 as the bond selloff continued for a second day on Friday, driving the yield curve steeper after two weeks of flattening. Furthermore, Oil prices dipped on Monday as a rising U.S. rig count pointed to further increases in the country's output, underlining one of only a few factors holding back crude markets in an otherwise bullish environment.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.73% from its previous close of 7.72% on Friday.
The benchmark five-year interest rates were trading 8 basis point higher at 7.72% from its previous close of 7.64% on Friday.