Bond yields traded higher on Monday as the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 59.3 in December from 58.4 in November. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also grew to 59.2 in December as against 58.6 in November.
In the global market, U.S. Treasury yields moved higher on Friday as investors considered the economic outlook for the new year amid a quiet trading week. Furthermore, Oil prices edged higher on Friday and were on track for weekly gains as cold weather in Europe and the U.S. as well as additional economic stimulus flagged by China helped push prices in the previous session to their highest in more than two months.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.89% from its previous close of 6.77% on Friday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.82% from its previous close of 6.71% on Friday.
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