Bond yields traded higher on Monday as Piyush Goyal, the union minister for commerce and industry, said that the hike in capital gains taxes is unlikely to slow down capital market activity.
In the global market, U.S. Treasury yields fell Friday after the Federal Reserve’s preferred inflation gauge matched expectations ahead of the central bank’s monetary policy meeting next week. Furthermore, oil futures fell about 1.5% on Friday, finishing the week lower on declining Chinese demand and hopes of a Gaza ceasefire agreement that could ease Middle East tensions and accompanying supply concerns.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.95% from its previous close of 6.84% on Friday.
The benchmark five-year interest rates were trading 10 basis points higher at 7.04% from its previous close of 6.94% on Friday.