Bond yields traded lower on Monday, as the local currency rupee rose for the second successive week despite broad gains in the dollar against its major crosses.
In the global market, US Treasury yields rose on Friday, with the 10-year yield hovering near a one-week high as traders pared safe-haven bond positions stemming from hopes for reduced tension between Italy and the European Commission over the country's debt-laden budget. Furthermore, Oil prices edged up, as markets were expected to tighten once US sanctions against Iran's crude exports are implemented next month.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.91% from its previous close of 7.92% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.90% from its previous close of 7.91% on Friday.