Bond yields edged higher on Monday, as rating agency Icra stated that the GST compensation fund may see a shortfall of Rs 15,000-25,000 crore for 2019-20, and it pegged the unpaid GST compensation to the states at Rs 60,000-70,000 crore for the October 2019-January 2020 period.
In the global market, U.S. Treasury yields declined on Friday as concerns about global growth and a growing coronavirus epidemic outweighed a strong U.S. jobs report.Furthermore, Oil prices extended their decline from an early January peak above $70 as the spectre of excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China, the world's largest oil importer.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.44% from its previous close of 6.43% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.01% from its previous close of 6.04% on Friday.