Bond yields traded higher on Monday as the Reserve Bank said India’s forex reserves jumped by $4.039 billion to $598.897 billion for the week ended September 1. In the previous reporting week, the overall reserves had dropped by $30 million to $594.858 billion.
In the global market, Treasury yields finished mixed on Friday, but were higher for the week, as traders turned to next week’s U.S. consumer price index report for August. Furthermore, oil prices gained almost 1% to a nine-month high on Friday on rising U.S. diesel futures and worries about tight oil supplies after Saudi Arabia and Russia extended supply cuts this week.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.20% from its previous close of 7.19% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.24% from its previous close of 7.20% on Friday.