Bond yields traded higher on Monday as Federation of Automobile Dealers Associations (FADA) has said that automobile retail sales in India rose 6 per cent to 2,61,43,943 units in FY25 with rural areas performing better than urban regions across passenger vehicle and two-wheeler segments.
In the global market, U.S. Treasury yields continued to plummet on Friday, with 10-year Treasury yield earlier falling below 4%, after China retaliated against President Donald Trump's aggressive 'reciprocal tariff' policy rollout, causing investors to flood into bonds for safety on fears of a global recession. Furthermore, oil prices slid more than 3 per cent on Monday, deepening last week's losses, as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for crude.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.58% from its previous close of 6.46% on Friday.
The benchmark five-year interest rates were trading 13 basis points higher at 6.43% from its previous close of 6.30% on Friday.