Bond yields traded higher on Monday as India's foreign exchange reserves increased to $604 billion as on December 1, surpassing the $600 billion mark after a gap of about four months.
In the global market, treasury yields jumped Friday after the November jobs report showed the unemployment rate unexpectedly fall, suggesting continued tightness in the labor market despite the Federal Reserve’s efforts to cool the economy. Furthermore, oil prices rose more than 2% on Friday after U.S. data supported expectations of demand growth, but both benchmarks fell for a seventh straight week, their longest streak of weekly declines in half a decade, on lingering oversupply concerns.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.27% from its previous close of 7.26% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.24% on Friday.