Bond yields traded lower on Monday, as traders took some support with a report that foreign investors have pumped in nearly Rs 8,285 crore into the Indian capital markets so far this month, after pulling out hefty funds in October, due to fall in crude oil prices.
In the global market, US Treasury yields retreated on Friday after a top Federal Reserve official said US interest rates are nearing the central bank's estimates of a neutral level, suggesting that the current tightening cycle may soon end. Furthermore, Oil prices rose as traders expected top exporter Saudi Arabia to push producer club OPEC to cut supply towards the end of the year.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.80% from its previous close of 7.82% on Friday.
The benchmark five-year interest rates were trading flat at its previous close at 7.69% on Friday.