Bond yields edged higher on Monday as traders took some support with the commerce and industry ministry’s statement that the country is on track to attract $100 billion foreign direct investment (FDI) in the current fiscal on account of economic reforms and ease of doing business in recent years.
In the global market, the U.S. Treasury yield rose in tandem with British government debt yields on Friday, which jumped after Britain's new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing. Furthermore, Oil prices fell for a second day on Monday on fears of lower fuel demand from an expected global recession sparked by rising worldwide interest rates and as a surging U.S. dollar limits the ability of non-dollar consumers to purchase crude.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.40% from its previous close of 7.39% on Friday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.39% from its previous close of 7.36% on Friday.