Bond yields traded lower on Monday, after the federal government reduced its gross market borrowing for the current fiscal year by 700 billion rupees.
In the global market, US Treasury yields slipped on Friday as the $15.3 trillion bond sector recorded its worst month since January due to rising government debt supply and sturdy economic data that have enabled the Federal Reserve to keep raising interest rates. Furthermore, Brent crude oil prices hit their highest level since November 2014 ahead of US sanctions against Iran that kick in next month.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.96% from its previous close of 8.02% on Friday.
The benchmark five-year interest rates were trading 5 basis points lower at 8.02% from its previous close of 8.07% on Friday.