Bond yields traded higher on Monday despite Reserve Bank of India’s report stating that India’s forex reserves dropped by $11.413 billion to $698.346 billion during the week ended March 20, due to a sharp decline in gold reserves. In the previous reporting week, the overall reserves had fallen by $7.052 billion to $709.759 billion.

In the global market, the U.S. 10-year Treasury yield was relatively unchanged on Friday as investors kept an eye on the Middle East conflict. Further, oil prices ended Friday at their highest point in over three years amid rising concerns over potential supply disruptions due to the ongoing closure of the Strait of Hormuz, after Iran adopted a rigid stance in peace talks with US. 

Back home, the yields on new 10-year Government Stock were trading 6 basis points higher at 6.99% from its previous close of 6.93% on Friday.  

The benchmark five-year interest rates were trading 7 basis points higher at 6.73% from its previous close of 6.66% on Friday.