Bond yields ended higher after private report stated that Ratings agency Icra revised up its 2021-22 real GDP growth estimate for India to 9 percent from the earlier 8.5 percent. A ramp-up in COVID-19 vaccination, healthy advance estimates of kharif (summer) crop and faster government spending were the factors which led to the revision. It expects the second half of the fiscal year to have brighter prospects.
In the global market, U.S. Treasury yields jumped again on Friday as a repricing of portfolios continues in the wake of the Federal Reserve's decision to soon begin tapering its massive bond purchases, a move that could lead to higher interest rates next year.
Back home, the yields on new 10-year Government Stock were ended 3 basis points higher at 6.21% from its previous close of 6.18% on Friday.
The benchmark five-year interest rates were ended 4 basis points higher at 5.68% from its previous close of 5.64% on Friday.