Bond yields edged lower on Monday, on sustained demand from corporates and banks. Some support also came with report that foreign investors have pumped in nearly $ 23 billion into the Indian capital markets in January-June 2017 on several factors, including expectations of accelerated pace of reforms.
In the global market, most U.S. Treasury yields rose on Friday, with longer-dated yields briefly hitting multi-week highs, after U.S. jobs data came in strong enough to keep expectations alive for tighter global central bank monetary policy. Furthermore, oil prices recovered some losses after a 3 percent fall in the previous session, but markets remain under pressure from high drilling activity in the United States and ample supplies from producer club OPEC.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.50% from its previous close of 6.53% on Friday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.64% from its previous close of 6.74% on Friday.