Bond yields traded higher on Monday with a private report that India’s manufacturing, agriculture, and services sector activities are likely to sustain growth in FY24 on the back of private investments and improved high-frequency data, although headwinds of slowing exports, a global slowdown, and monsoon uncertainty may continue.
In the global market, the 10-year and 2-year were among U.S. Treasury yields climbing on Friday as investors digested higher-than-expected payroll data. Furthermore, oil prices rose on Friday after a U.S. debt ceiling deal averted a default in the world's biggest oil consumer and jobs data indicated a possible rate hike pause, while attention turned to a meeting of OPEC ministers and their allies at the weekend.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.00% from its previous close of 6.98% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.92% from its previous close of 6.89% on Friday.
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