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Bond yields trade higher on Monday

26 Aug 2024 Evaluate

Bond yields traded higher on Monday as the latest data from the Reserve Bank of India showed that India’s foreign exchange reserves rose by $4.54 billion to $674.66 billion in the week ended August 16. The total reserves increased on the back of a rise in foreign currency assets, which grew by $3.6 billion during the week.

In the global market, the U.S. 10-year Treasury yield fell Friday as Federal Reserve Chair Jerome Powell signaled at the annual Jackson Hole symposium that the central bank will soon begin cutting interest rates. Furthermore, oil prices rose more than 1% on Friday as U.S. Federal Reserve Bank Chair Jerome Powell signalled interest rate cuts would be among the central bank's priorities in the coming months.

Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.96% from its previous close of 6.85% on Friday.

The benchmark five-year interest rates were trading 11 basis points higher at 6.89% from its previous close of 6.78% on Friday.

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