Bond yields were trading higher on Monday, as India's manufacturing sector activity improved in the month of March, as growth of factory orders and production quickened to the strongest in three months. With pressure on supply chains subsiding and raw material availability improving, input cost inflation retreated to its second-lowest mark in two-and-a-half years.
In the global market, U.S. Treasury yields were flat on Friday as the bond market wrapped up a wild quarter that saw rates spike and then reverse lower on the regional bank crisis. Furthermore, Oil prices rose by more than a dollar a barrel on Friday to record their second-straight week of gains, as supplies tightened in some parts of the world and U.S. inflation data indicated price rises were slowing.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.33% from its previous close of 7.31% on Friday.
The benchmark five-year interest rates were trading 8 basis points higher at 7.24% from its previous close of 7.16% on Friday.