Bond yields traded higher on Monday as the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 59.2 in October from 57.7 in September, indicating a quicker improvement in the health of the sector.
In the global market, the 10-year Treasury yield was little changed Friday following this week’s interest rate cut from the Federal Reserve and the central bank’s more hawkish tone on future policy. Furthermore, oil prices settled slightly higher on Friday, popping up as media reports said U.S. air strikes on Venezuela could begin within hours and then retreating after U.S. President Donald Trump issued a denial on social media.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.55% from its previous close of 6.52% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.19% from its previous close of 6.17% on Friday.
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