Bond yields traded lower on Monday as the latest data released by the Reserve Bank of India (RBI) showed India’s foreign exchange reserves declined $4.6 billion to $596 billion for the week ended June 10. The fall in total reserves was mainly because of a decline in foreign currency assets worth $4.5 billion.
In the global market, U.S. Treasury yields held near this week’s lows on Friday after a volatile five days that saw them hit more than 10-year highs on expectations of aggressive rate hikes, and then fall on concerns about how these will impact growth. Furthermore, oil prices wobbled as investors refocused on tight supplies, though sentiment was still fragile after 6% slump in the previous session amid concerns about slowing global economic growth and fuel demand.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 7.46% from its previous close of 7.54% on Friday.
The benchmark five-year interest rates were trading 9 basis points lower at 7.29% from its previous close of 7.38% on Friday.