Bond yields traded flat, as SBI Ecowrap in its latest research note has said that India's debt to gross domestic product (GDP) ratio is likely to climb to 87.6 per cent this fiscal, up from 72.2 per cent last year, due to a collapsing GDP and consequently higher borrowings.
In the global market, U.S. Treasury yields rose on Friday as investors weighed the prospect of new economic damage from shutdowns meant to stem the spread of COVID-19 against the possibility that the worst has passed. Furthermore, oil prices dipped, weighed down by the prospect that a rise in the pace of coronavirus infections could derail a recovery in fuel demand.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.80% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 4.90% from its previous close of 4.88% on Friday.