Bond yields traded higher on Monday after Consumer Price Index (CPI), eased to 4.06 per cent in the month of January 2021. The retail inflation during the month of December 2020 was at 4.59 per cent. This is the second consecutive month the CPI data has come within the Reserve Bank of India’s (RBI) upper margin of 6 per cent.
In the global market, Benchmark U.S. Treasury yields rose to their highest levels since March onFriday as investors closed positions ahead of a long U.S. weekend, while inflation expectations edged up to a six-year high. Furthermore, oil prices rose to their highest in more than a year, after a Saudi-ledcoalition fighting in Yemen said it intercepted an explosive-laden drone firedby the Iran-aligned Houthi group, raising fears of fresh Middle East tensions.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.02% from its previous close of 5.99% on Friday.
The benchmark five-year interest rates were trading 5 basis points higher at 5.55% from its previous close of 5.50% on Friday.
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