Bond yields were trading higher on Monday even as a private report lowered India’s economy growth forecast to 7.8 per cent for 2022 due to the nation’s exports being impacted by the Russia-Ukraine war and spiking oil prices causing ripple effects. It said rupee is likely to further depreciate against US dollar while soaring commodity prices will push inflation up.
In global front, U.S. Treasury yields fell on Friday after data showed that wage growth stalled in February, while the yield curve reached its flattest level in two years as concerns about the war in Ukraine led investors to seek out longer-dated low-risk debt. Furthermore, Oil prices soared to their highest since 2008 due to delays in the potential return of Iranian crude to global markets and as the United States and European allies consider banning imports of Russian oil.
Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.88% from its previous close of 6.81% on Friday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.21% from its previous close of 6.11% on Friday.