Bond yields traded lower on Monday, as traders took some support with Asian Development Bank’s (ADB) report that the Indian economy would grow at 7.3 per cent in FY19.
In the global market, US Treasury debt prices gained on Friday as stocks weakened in choppy trading, and as bonds were also helped by the weight of new Treasury supply this week being lifted from the market. Furthermore, oil prices edged up supported by ongoing supply cuts from producer club the Organization of the Petroleum Exporting Countries (OPEC) and Russia and by a drop in US drilling activity.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 7.43% from its previous close of 7.50% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.27% from its previous close of 7.29% on Friday.