Bond yields edged higher on Monday after Union Finance Minister Nirmala Sitharaman has said the Indian economy will grow at 7.4 per cent in this fiscal (FY23) and continue at the same level in the next fiscal as well. She added the International Monetary Fund and the World Bank have projected India’s growth to be the fastest for the next two fiscal years, and their estimates are in sync with that of the Reserve Bank of India as well.
In the global market, U.S. two-year Treasury yields briefly popped to their highest levels since October 2007 before stabilizing near two-month highs on Friday after Federal Reserve Chair Jerome Powell reiterated that the U.S. central bank will continue to raise interest rates to fight inflation. Furthermore, oil prices were mixed as investors balanced expectations the OPEC will cut output to support prices against concerns sparked by Federal Reserve Chairman Jerome Powell saying the United States will face slow growth 'for some time'.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.24% from its previous close of 7.21% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.03% from its previous close of 6.99% on Friday.