Bond yields edged lower on Monday on bets the Reserve Bank of India will deliver a rate cut this week. However, the nation's central bank will conduct more auctions of cash management bills to absorb liquidity.
In the global market, U.S. Treasury futures prices rose on Sunday after Italian voters were seen rejecting a change to the country's constitution, which was designed to hasten the legislative process. Furthermore, oil prices fell by one percent as a higher U.S. rig count unsettled markets amid nagging concern that output cuts, planned as part of concerted action between producer club OPEC and Russia, might not be as big as initially anticipated.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.21% from its previous close of 6.23% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.17% from its previous close of 6.20% on Friday.