Bond yields edged higher on Monday as India's services activity rose at the sharpest rate of expansion in January 2024. The HSBC India Services PMI came in at 61.8 in January, up from 59 in December. It is the highest since July 2023 when the PMI was 62.3. A reading above 50 shows that the sector is expanding.
In the global market, the 10-year U.S. Treasury yield topped 4% on Friday after a surprisingly strong jobs report that showed continued strength in the economy, but raised questions on when the Federal Reserve can cut interest rates. Furthermore, oil prices fell by about 2% on Friday and posted weekly losses after U.S. jobs data shrank the odds of imminent interest rate cuts in the world's largest economy, which could dampen crude demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.08% from its previous close of 7.05% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.01% from its previous close of 6.96% on Friday.