Bond yields edged higher on Monday as Income Tax Department in its latest data has showed that direct tax collection, including personal income tax, rose by 35.46 per cent to Rs 6.48 lakh crore in the current fiscal up to September 8, 2022 over the gross collections for the corresponding period of last year. In the last fiscal ended March 31, 2022, India's direct tax collection rose by a record 49 per cent to Rs 14.10 lakh crore.
In the global market, interest-rate sensitive two-year Treasury yields hit more than 14-year highs on Friday and the yield curve inverted further as Federal Reserve officials stressed the need for more rate hikes to stem soaring inflation. Furthermore, oil prices slipped during Asian trade as the prospect of further interest rate hikes in the United States and Europe to quell inflation and the imposition of strict COVID-19 restrictions in China overshadowed the global demand outlook.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.17% from its previous close of 7.16% on Friday.
The benchmark five-year interest rates were trading 4 basis point higher at 6.99% from its previous close of 6.95% on Friday.