Bond yields traded higher on Monday, after bank credit grew by 5.67 per cent to Rs 104.04 lakh crore, while deposits increased by 10.63 per cent to Rs 143.80 lakh crore in the fortnight ended November 6. In the fortnight ended November 8, 2019, bank credit stood at Rs 98.46 lakh crore and deposits at Rs 129.98 lakh crore.
In the global market, U.S. Treasuries pared an overnight yield drop but ended lower on the day in choppy trading on Friday as investors balanced the prospect of new fiscal stimulus against the request by the U.S. government for the Federal Reserve to return unused funds from programs meant to backstop markets. Furthermore, oil prices extended their gains as traders were optimistic about a recovery in crude demand thanks to successful coronavirus vaccine trials, but price gains were contained by renewed lockdowns in several countries.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 5.90% from its previous close of 5.87% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.07% from its previous close of 5.05% on Thursday.