Bond yields traded higher on Monday despite India’s wholesale inflation based on wholesale price index (WPI) increased to 1.84% in September 2024 from a four-month low of 1.31% it had hit in the previous month due to increase in prices of food articles, food products, other manufacturing, manufacture of motor vehicles, trailers & semi-trailers, manufacture of machinery & equipment, etc. The WPI had witnessed a slight contraction of -0.1% in September 2023.
In the global market, The U.S. 10-year Treasury yield dipped below 4.10% on Friday as investors assessed the latest inflation data that came in cooler than expected. Furthermore, Oil prices have gained more than 10% through Friday’s close since Iran hit Israel with ballistic missiles last week.
Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.79% from its previous close of 6.69% on Friday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.88% from its previous close of 6.78% on Friday.