Bond yields were trading higher on Monday after Union minister Ashwini Vaishnaw has said that Indian economy can grow consistently at 8 per cent for the next 20 years leading to the generation of up to 1.5 crore new jobs and bringing out 3.5 crore people out of the poverty every year on the basis of the capital investment strategy of the government. He said that the government has set a target of increasing the capital investment level in the budget from 27 per cent of the GDP to 35 per cent of the GDP over the next few years.
In global front, U.S. Treasury yields rose on Friday, with the benchmark 10-year note surging to nearly three-year highs, as the market grappled with high inflation and a Federal Reserve that could easily spark a downturn as it aggressively tightens policy. Furthermore, Oil prices plunged about $4 as concerns over slower fuel demand in China grew after authorities in Shanghai said they would shut the country's financial hub for a COVID-19 testing blitz over nine days.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.83% from its previous close of 6.81% on Friday.
The benchmark five-year interest rates were trading 3 basis points higher at 6.11% from its previous close of 6.08% on Friday.