Bond yields traded lower on Monday as the Reserve Bank of India (RBI) in its latest data has said India's foreign exchange reserve fell by $7.3 billion to a near two-month low of $595 billion in the week ended August 18, registering the most substantial weekly decline in over six months.
In the global market, U.S. Treasury yields rose Friday after Federal Reserve Chairman Jerome Powell signaled more rate hikes could be ahead and reiterated his stance against inflation. Furthermore, oil futures climbed about 1% to a one-week high on Friday as U.S. diesel prices soared, the number of oil rigs dropped and a fire broke out at a refinery in Louisiana.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.17% from its previous close of 7.20% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.17% from its previous close of 7.19% on Friday.