Bond yields edged lower on Monday, after Reserve Bank of India’s (RBI) report showed that India’s foreign exchange reserves increased by $4.239 billion to hit a record high of $437.833 billion as on October 4.
In the global market, the Federal Reserve's preferred measure of the yield curve on Friday un-inverted for the first time since mid-July, as progress in US-China trade talks boosted the US economic outlook. Furthermore, Oil prices were little changed, holding onto 2% gains from Friday amid renewed geopolitical tensions in the Middle East, while a detente in the US-China trade war buoyed market sentiment.
Back home, the yields on new 10 year Government Stock were trading 3 basis point lower at 6.70% from its previous close of 6.73% on Friday.
The benchmark five-year interest rates were trading 4 basis point lower at 6.34% from its previous close of 6.38% on Friday.