Bond yields traded higher on Monday despite India’s services sector growth eased during the month of July as higher wage and material costs continued to push up business expenses, with the overall rate of inflation quickening from June. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index eased to 60.3 in July from 60.5 in June.
In the global market, U.S. Treasury yields slid on Friday after a weaker-than-expected jobs report for last month added to fears that economic growth is slowing. Furthermore, Oil prices fell on Friday, settling at their lowest since January after data showed the US economy added fewer jobs than expected last month, and weak Chinese economic data added more pressure.
Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.97% from its previous close of 6.90% on Friday.
The benchmark five-year interest rates were trading 9 basis points higher at 6.89% from its previous close of 6.80% on Friday.