Bond yields edged higher on Monday amid India's manufacturing sector growth improved in the month of June, as buoyant demand conditions spurred the expansions in new orders, output and buying levels.
In the global market, the 10-year U.S. Treasury yield was higher Friday as investors digested a key inflation measure that came in line with expectations. Furthermore, oil prices fell on Friday as investors weighed weak U.S. fuel demand and took some money off the table at quarter-end, while key inflation data for May boosted the chances the Federal Reserve will start to cut interest rates this year.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.02% from its previous close of 7.00% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.03% from its previous close of 7.02% on Friday.