Bond yields edged higher on Monday, as Moody's Investors Service has cut India’s 2020 Gross Domestic Product (GDP) growth forecast to 5.4 percent from 6.6 percent. At the same time, it has cut the 2021 GDP growth forecast to 5.8 percent from 6.7 percent. It added weakness across global economy due to the impact of the novel coronavirus outbreak could hurt India’s recovery.
In the global market, US Treasury yields declined on Friday as investors bought safe-haven government debt ahead of a long holiday weekend after soft retail sales data and on continuing caution about the coronavirus epidemic in China. Furthermore, oil prices edged lower as investors brace for economic data in Asia due this week that should give a reading on how China's coronavirus epidemic has affected oil demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.39% from its previous close of 6.36% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.95% from its previous close of 5.93% on Friday.