Bond yields traded higher on Monday, after the Reserve Bank of India in its latest report has showed that bank credit grew at 5.82 percent to Rs 104.34 lakh crore, while deposits rose by 10.89 percent to Rs 143.71 lakh crore in the fortnight ended November 20. In the fortnight ended November 22, 2019, bank credit stood at Rs 98.60 lakh crore and deposits at Rs 129.58 lakh crore.
In the global market, U.S. Treasury yields shot higher and the yield curve steepened on Friday after a disappointing November employment report added to pressure for Washington to pass a new round of stimulus to help the coronavirus-battered economy. Furthermore, oil prices fell as a continued surge in coronavirus globally forced a series of renewed lockdowns, including strict new measures in Southern California.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 5.92% from its previous close of 5.89% on Friday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.09% from its previous close of 5.06% on Friday.