Federal bond yields recoil from the day's stumpy start, on Monday afternoon, after a small rise in the US bond yields was seen along with rise in the local shares.

The 10-year Indian benchmark bond yield was down by 1 basis point (bps) at 8.25 compared with the Thursday’s closing where it had dropped and was at 8.21%. On Friday, the bond and forex markets were closed due to a local holiday.

Brent crude went down by around $3, to below $106 a barrel and the US oil fell more than a dollar to below $82. The traders had revealed that the rise in the US yields was restricting the hitch in local bond yields.

The 10-year benchmark U. S. bond yield was up by 4 bps, at 2.11%, in Asian trade.

Pacific Investment Management Co., Munich-based co-head of the emerging markets, Michael Gomez stated, “If we get a period of lower global growth, emerging- market local bond yields will continue to rally”.

The benchmark five-year Indian index exchange rate was 2 bps down at 6.72 % as compared to Thursdays close and it’s the one-year rate was 11 bps down at 7.60%.

The domestic shares were seen trading up by 1.4%, however, earlier they had dropped by 0.6%.