Bond yields traded higher on Monday as India’s factory output, measured in terms of the Index of Industrial Production (IIP), grew to a seven-month high of 5.9 per cent in May 2024, led by better-than-expected expansion in power and mining sectors.
In the global market, the 10-year Treasury yield was marginally lower on Friday as investors looked past a slightly hotter reading of wholesale inflation. Furthermore, oil futures prices settled slightly lower on Friday as investors weighed weaker U.S. consumer sentiment against mounting hopes for a Federal Reserve rate cut in September.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 7.10% from its previous close of 6.98% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.95% from its previous close of 6.97% on Friday.