Bond yields were trading lower on Monday, as Ministry of Commerce & Industry in its latest data has showed that India’s inflation based on wholesale price index (WPI) rose to 13.11% in the month of February 2022 as against 12.96% in January 2022. The high rate of inflation in February 2022 is primarily due to rise in prices of mineral oils, basic metals, chemicals and chemical products, crude petroleum & natural gas, food articles and non-food articles etc. as compared to the corresponding month of the previous year. The WPI in February 2021 was at 4.83%.
In global front, the benchmark U.S. 10-year Treasury yield edged higher on Friday, with expectations largely set that the Federal Reserve will raise interest rates this week, while comments from Russian President Vladimir Putin briefly buoyed risk-on sentiment. Furthermore, oil prices extended last week's decline to fall by about $4 a barrel during early trade after a U.S. official said Russia was showing signs it might be willing to have substantive negotiations over Ukraine.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.83% from its previous close of 6.85% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.15% from its previous close of 6.17% on Friday.