Bond yields traded lower on Monday, as underlying sentiment continue to be positive amid comfortable cash position and expectations that the long pending Goods and Services Tax Bill may be approved soon.
In the global market, U.S. Treasury prices jumped on Friday, with benchmark yields touching two-week lows, as disappointing U.S. economic growth data caused traders to scale back expectations for an interest rate hike by the Federal Reserve in the next few months. Furthermore, Oil prices steadied after touching three-month lows during a week-long selloff fueled by a persistent global supply glut, bringing the monthly decline to nearly 15 percent, the biggest monthly loss in a year for U.S. crude.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.12% from its previous close at 7.16% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.01% from its previous close at 7.04% on Friday.