Bond yields edged lower on Monday, as foreign portfolio investors (FPIs) have withdrawn a whopping Rs 37,976 crore on a net basis from the Indian markets in March so far amid the coronavirus pandemic triggering fears of a global recession.
In the global market, U.S. 10-year Treasury yields jumped back over the 1% level on Friday after President Donald Trump declared a national emergency over the spreading coronavirus, a move that sent stocks soaring. Furthermore, oil extended losses as an emergency rate cut by the U.S. Federal Reserve failed to soothe global financial markets panicked by the rapid spread of the coronavirus while a price war rages on between top producers.
Back home, the yields on new 10 year Government Stock were trading 19 basis points lower at 6.13% from its previous close of 6.32% on Friday.
The benchmark five-year interest rates were trading 8 basis points lower at 5.87% from its previous close of 5.95% on Friday.