Bond yields traded higher on Monday after the Reserve Bank of India’s latest liquidity-tightening measures added to pressure on the debt market. Tighter banking-system liquidity can curb banks’ capacity to invest in government securities, weakening bond demand and pushing prices lower and yields higher.
In the global market, treasury yields were steady on Friday as investors wrapped up a volatile week that saw fresh 24-year highs on longer-dated rates. Furthermore, Oil prices edged lower on Monday as U.S. President Donald Trump’s announcement of an energy ceasefire between Russia and Ukraine raised hopes of fewer disruptions to fuel supplies, although continued attacks on commercial shipping in the Middle East limited losses.
Back home, the yields on new 10-year Government Stock were trading 8 basis points higher at 7.38% from its previous close of 7.30% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.06% from its previous close of 7.04% on Friday.
