Bond yields edged lower on Monday, on sustained demand from corporates and banks. Some support also came with a private survey showing that India’s manufacturing conditions improved in June at the strongest pace in 2018 so far, as favourable demand conditions led to greater output. The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, rose to 53.1 in June from 51.2 in May.
In the global market, Longer-dated Treasury yields fell on Friday and the yield curve hit its flattest level in more than 10 years after U.S. consumer spending growth in May undershot analysts' expectations. Furthermore, Oil prices fell by more than one percent as investors eyed rising supplies in Saudi Arabia, while U.S. President Donald Trump kept up the pressure on the world's top producer to make up for disruptions elsewhere.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.89% from its previous close of 7.90% on Friday.
The benchmark five-year interest rates were trading 7 basis points higher at 8.02% from its previous close of 7.95% on Friday.
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