Bond yields traded lower on Monday with report that the net direct tax collection during April-August was Rs 1.92 lakh crore, down 31 percent over the same period of the last fiscal. The net indirect tax collection during the five-month period till August fell 11 percent year-on-year to Rs 3.42 lakh crore.
In the global market, U.S. Treasury yields stabilized within their recent trading ranges on Friday as investors took in new inflation-tolerant messages from the Federal Reserve. Furthermore, oil prices edged higher as a tropical storm took aim for the U.S. Gulf of Mexico region halting some production, though price gains were capped by the potential return of oil output in Libya and a continued rise in coronavirus cases.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.00% from its previous close of 6.01% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.39% from its previous close of 5.41% on Friday.