Bond yields traded higher on Monday as Russia has agreed to give greater market access to Indian goods to address India’s concerns over the increasing trade deficit in Moscow’s favour as boosting economic cooperation was the central focus of summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin.
In the global market, U.S. Treasury yields rose on Friday as investors heard that the inflation measure most closely watched by the Federal Reserve was lower than expected in September, the most recent available because of the long government shutdown in October and November. Furthermore, oil prices edged up on Friday on increasing expectations the U.S. Federal Reserve will cut interest rates next week, which could boost economic growth and energy demand, as well as geopolitical uncertainty that could limit supplies from Russia and Venezuela.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 6.55% from its previous close of 6.50% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.19% from its previous close of 6.18% on Friday.