Bond yields edged lower on Monday as Reserve Bank of India data showed that India’s forex reserves contracted by $5.4 billion to $643.16 billion as of April 12. Previously, forex reserves surged by $2.9 billion to an all-time record high of $648.56 billion, for the week ended on April 5, 2024.
In the global market, U.S. Treasury yields ticked down on Friday but were still slightly up on the week, after a slew of economic data that left mixed signals as to whether the Federal Reserve is nearing its rate-hiking cycle. Furthermore, oil settled slightly higher on Friday, but posted a weekly decline, after Iran played down a reported Israeli attack on its soil, a sign that an escalation of hostilities in the Middle East might be avoided.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.20% from its previous close of 7.22% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.24% on Friday.