Bond yields edged higher on Monday with a private report stating that industry leaders have expressed confidence in India’s economy being resilient in the face of global headwinds in uncertainties, with the Confederation of Indian Industries’ Business Confidence Index achieving its highest reading in two years for the October-December quarter.
In the global market, U.S. Treasury yields ticked higher on Friday as investors digested the latest inflation report and considered the outlook for Federal Reserve interest rate hikes. Furthermore, Oil prices settled more than a dollar a barrel higher on Friday, notching their biggest weekly gains since October, as the U.S. dollar dropped to a seven-month low and more indicators pointed toward growing demand from top oil importer China.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.31% from its previous close of 7.29% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.15% from its previous close of 7.13% on Friday.