Bond yields edged lower on Monday, on sustained demand from corporates and banks. However, gains remained capped with report that even as monsoon is predicted to be normal this year, its uneven distribution could spike food prices, and inflation is likely to edge further.
In the global market, U.S. 10-Year treasury note futures prices were down slightly on Sunday evening, after U.S. Treasury Secretary Steven Mnuchin said earlier that the U.S. trade war with China was 'on hold'. Furthermore, Oil prices rose as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies 'on hold'.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.83% from its previous close of 7.84% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.78% from its previous close of 7.77% on Friday.