Bond yields edged lower on Monday on rising speculation that the Reserve Bank of India will lower its repo rate by 25 basis points to 6 percent in its next month monetary policy meeting. Also, weak December manufacturing PMI lent support to safe-haven buying.
In the global market, US Treasury debt yields closed lower on Friday in a shortened session, falling for the third straight day to end a weak fourth quarter with a modest consolidation and round out a year of surprises.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 6.45% from its previous close of 6.52% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.62% from its previous close of 6.65% on Friday.