Bond yields traded flat on Monday, as traders remained cautious with Central Statistics Office’s (CSO) first advance estimates of GDP growth for current financial year which highlighted that the Indian economy is expected to grow at a slower 6.5 percent in 2017-18 compared to the 7.1 percent in 2016-17. According to CSO, the Gross Domestic Product (GDP) at constant (2011-12) prices for 2017-18 is likely to attain a level of Rs 129.85 lakh crore.
In the global market, U.S. Treasury yields rose on Friday with the two-year yield hovering near a more than nine-year peak as investors stuck to the view of a possible rate increase in March, brushing off a disappointing figure on domestic hiring for December. Furthermore, oil prices firmed on the back of a slight decline in the number of U.S. rigs drilling for new production, with crude holding just below near three-year highs reached last week.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.16% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.31% from its previous close of 7.29% on Friday.