Bond yields traded higher on Monday after finance ministry has said advance tax collection increased by 53.50 per cent to Rs 4,59,917.1 crore as on December 16, 2021 for the first, second and third quarter of 2021-22, against advance tax collections of Rs 2,99,620.5 crore for the corresponding period of 2020-21.
In the global market, U.S. Treasury bond yields were lower on Friday, though off session lows, as traders assessed the recent hawkish Federal Reserve stance as it bank tries to balance rising inflation against the economic toll of the Omicron coronavirus variant. Furthermore, oil prices slumped as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions on businesses to combat its spread may hit fuel demand.
Back home, the yields on new 10-year Government Stock were traded 4 basis points higher at 6.45% from its previous close of 6.41% on Friday.
The benchmark five-year interest rates were traded 4 basis points higher at 5.80% from its previous close of 5.76% on Friday.