Bond yields were trading marginally higher on Monday as traders took some support with a labour ministry stating that retail inflation for farm and rural workers sequentially eased to 6.38 per cent and 6.6 per cent, respectively, in December 2022, mainly due to lower prices of certain food items .
In the global market, Treasury yields rose Friday, with 2- and 10-year rates extending a rise off roughly four-month lows but posted a third straight weekly decline, as investors weighed mixed signals on the economy. Furthermore, Oil prices drifted lower in early trade on Monday, thinned by the Lunar New Year holiday in east Asia, but held on to most of last week's gains on the prospect of an economic recovery in top oil importer China this year.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.35% from its previous close of 7.34% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.15% from its previous close of 7.16% on Friday.