Bond yields traded higher on Monday after Income Tax department has said net direct tax collections swelled 17.33 per cent to Rs 5.84 lakh crore so far this fiscal, reaching 32 per cent of the full-year budget estimates (BE). It said the collections from direct taxes, which include personal income tax and corporate tax, up to August 10, 2023, continue to register steady growth.
In the global market, U.S. Treasury yields rose on Friday as traders assessed a slightly higher-than-expected measure of wholesale inflation. Furthermore, oil prices edged higher on Friday after the International Energy Agency forecast record global demand and tightening supplies, propelling prices to the seventh straight week of gains, the longest such streak since 2022.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.21% from its previous close of 7.19% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.18% on Friday.