Bond yields traded lower on Monday, as Reserve Bank of India scrapped an open market sale of bonds scheduled for this week.
In the global market, U.S. Treasury yields edged lower on Friday, in line with weakness on Wall Street and declines in German 10-year bond yields, as the yield curve continued to flatten following strong U.S. housing starts data for October. Furthermore, oil markets were tepid as traders were reluctant to take on big new positions ahead of an OPEC meeting at the end of the month, when the producer club is expected to decide whether to continue output cuts aimed at propping up prices.
Back home, the yields on new 10 year Government Stock were trading 14 basis points lower at 6.91% from its previous close of 7.05% on Friday.
The benchmark five-year interest rates were trading 10 basis points lower at 6.80% from its previous close of 6.90% on Friday.