Bond yields extending their previous session’s fall, dropped to their lowest in nearly three months on Monday, after the central bank last week indicated its next move was likely to be an easing of monetary policy as risks to growth increase.
On the global front, US Treasury debt prices rose on Friday as safe-haven buying intensified and the Federal Reserve's presence in the Treasury market spurred some defensive positioning by Treasury traders later in the day. Meanwhile, Brent crude futures fell below $103 on Monday as the market worried that Europe's debt woes could trigger a global recession, but losses were limited by signs that China's oil demand would hold up as its economy headed for a moderate slowdown.
The yields on 10-year benchmark 8.79% - 2021 bonds were trading lower at 8.34% from its previous close of 8.38% on Friday.
The benchmark five-year interest rate swaps eased by 9 basis points at 6.83% from its previous close of 6.92%.
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