Bond yields edged lower on Monday, on sustained demand from corporates and banks. However, gains were limited as investors awaited a fresh supply of state bonds and retail inflation data.
In the global market, U.S. Treasury prices gained on Friday after renewed weakness in equity markets increased demand for the low-risk debt. Furthermore, oil prices rose, steadying from steep losses as calmer stock markets found their footing after tumbling in last week's chaotic trading.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.49% from its previous close of 7.50% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.33% from its previous close of 7.34% on Friday.