Bond yields were trading higher on Monday amid S&P Global Ratings kept its forecast for India's economic growth unchanged at 6 per cent in the fiscal year starting April 1, before rising to 6.9 per cent in the following year. In the quarterly economic update for Asia-Pacific, S&P saw inflation rate easing to 5 per cent in 2023-24 fiscal, from 6.8 per cent in the current financial year.
In the global market, U.S. Treasury yields fell on Friday as investors considered what the Federal Reserve’s interest rate policy expectations could mean for the economy. A slide in Deutsche Bank shares also renewed concerns over the state of the global banking system and made Treasurys more appealing. Furthermore, Oil prices settled lower Friday declining European banking shares and after U.S. Energy Secretary Jennifer Granholm said refilling the country’s Strategic Petroleum Reserve (SPR) may take several years, dampening demand prospects.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.32% from its previous close of 7.31% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.16% on Friday.