Bond yields edged higher on Monday as traders took some support with Union Minister for Commerce and Industry Piyush Goyal’s statement that foreign trade would become a truly defining feature that would help India become a $30 trillion economy in the Amrit Kaal.
In the global market, treasury yields climbed on Friday as both the Federal Reserve’s favorite gauge of inflation and an employment cost index for September pretty much matched forecasts, signaling nothing to derail the central bank from imposing another three quarters percentage point rate hike on the economy at a policy meeting next week. Furthermore, Oil prices fell over $1 on Monday following weaker-than-expected factory activity data out of China and on concerns its widening COVID-19 curbs will curtail demand.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.45% from its previous close of 7.41% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.38% from its previous close of 7.34% on Friday.