Bond yields were trading higher on Monday with latest data showing that the Reserve Bank of India’s (RBI’s) foreign exchange reserves climbed $1.7 billion to $573.73 billion in the week ended January 20. The rise was on account of an increase in the RBI’s foreign currency assets as well as its gold holdings.
In the global market, Treasury yields climbed on Friday as a key inflation report watched by the Federal Reserve indicated a sizable increase in prices. Furthermore, oil prices settled lower on Friday, making their weekly finish flat to lower, as indications of strong Russian oil supply offset better-than-expected U.S. economic growth data, strong middle distillate refining margins and hopes of a rapid recovery in Chinese demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.39% from its previous close of 7.38% on Friday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.25% from its previous close of 7.20% on Friday.