Bond yields traded higher on Monday after revenue Secretary Tarun Bajaj has said that Indian economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. Giving two scenarios, he said if Rs 1.10 lakh crore GST is collected per month, the deficit in states’ revenue would be Rs 1.50 lakh crore. If Rs 1.15 lakh crore GST is collected monthly, then that deficit would be Rs 1.25 lakh crore.
In the global market, U.S. Treasury yields fell on Friday in a shortened trading session on month-end buying by portfolio managers, with the market largely shrugging off a rise in U.S. core inflation above the Federal Reserve's target. Furthermore, oil prices climbed, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week for supply guidance.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.02% from its previous close of 6.00% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.58% from its previous close of 5.54% on Friday.