Bond yields traded higher on Monday, as Reserve Bank of India (RBI) in its latest data has showed that bank credit rose by 5.26 percent to Rs 102.24 lakh crore, while deposits grew by 11.98 percent to Rs 142.48 lakh crore in the fortnight ended September 11. In the fortnight ended September 13, 2019, advances were at Rs 97.13 lakh crore and deposits stood at Rs 127.22 lakh crore.
In the global market, U.S. Treasury yields moved off earlier lows on Friday in the wake of an upbeat report on U.S. durable goods, while stocks shook off a weaker start to turn higher. Furthermore, oil prices dipped again as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with crude on track for its first monthly fall in many months after slipping last week.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.05% from its previous close of 6.03% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.41% from its previous close of 5.37% on Friday.