Bond yields traded flat on Monday, as traders remained cautious ahead of monsoon session of Parliament. Meanwhile, India’s trade deficit narrowed more-than-expected to $12.96 billion in June as gold imports nearly halved from a month earlier.
In the global market, U.S. Treasury yields dropped to multi-week lows on Friday as benign U.S. inflation data in June and surprise fall in retail sales clouded expectations about an interest rate increase later this year. Furthermore, Oil prices firmed, supported by a slowdown in new rigs looking for crude and a perception of strong demand.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.46% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.55% from its previous close of 6.57% on Friday.