Bond yields traded higher on Monday as RBI data showed bank credit grew 9.16 per cent to Rs 116.83 lakh crore and deposits rose 10.28 per cent to Rs 162.41 lakh crore for the fortnight ended December 31, 2021.
On the global front, U.S. Treasury yields were higher on Friday in choppy trade as a batch of soft economic data on consumer and manufacturing activity was seen as not enough to derail the Federal Reserve's path of tightening policy. Furthermore, oil prices rose, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.
Back home, the yields on new 10 year Government Stock traded 5 basis points higher at 6.63% from its previous close of 6.58% on Friday.
The benchmark five-year interest rates were traded 7 basis points higher at 6.04% from its previous close of 5.97% on Friday.