Bond yields ended higher on Monday after Economic Advisory Council to the Prime Minister (EAC-PM) has said that India’s Gross domestic product (GDP) is likely to grow by 7 - 7.5 percent in the next fiscal year (FY23). It said this should not mean that the Union Budget for 2022-23 should project unrealistically high tax revenue or tax buoyancy numbers.
In the global market, Long-dated U.S. Treasury yields tumbled on Friday as concerns about new lockdowns related to the spread of COVID-19 in Europe increased demand for safe-haven bonds, though the move was likely exaggerated by low liquidity. Furthermore, Crude oil fell to seven-week lows, extending declines after the previous session's slide, on concerns about excess supply after Japan said it was weighing releasing oil reserves and over demand from a worsening COVID-19 situation in Europe.
Back home, the yields on new 10-year Government Stock were ended 1 basis point higher at 6.35% from its previous close of 6.34% on Thursday.
The benchmark five-year interest rates were ended 4 basis points higher at 5.78% from its previous close of 5.74% on Thursday.