Bond yields traded higher on Monday as RBI data showed that the country's foreign exchange reserves increased by $3.854 billion to $601.363 billion in the week ended May 27.
In the global market, U.S. Treasury yields firmed to two-week highs on Friday after data showed the world's largest economy created more jobs than expected last month, keeping the Federal Reserve on track to raise interest rates by half a percentage point a few more times this year. Furthermore, oil prices rose more than $2 after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.50% from its previous close of 7.45% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.29% on Friday.