Bond yields traded lower on Monday despite government data showing that signalling an economic revival, goods and services tax (GST) collection touched a record high in December, posting growth of 11.6 per cent year-on-year (Y-o-Y) and surpassing the Rs 1-trillion mark for the third straight month.
In the global market, U.S. Treasury yields fell on Thursday, the last trading day of the year, pulling the yield curve flatter despite an unexpected drop in unemployment claims in the United States for a second straight week. Furthermore, Oil prices edged lower on the first day of 2021 trading ahead of a meeting of OPEC and allied producers to discuss output levels for February, with fears for first-half demand seeping into the market as the coronavirus pandemic lingers.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 5.85% from its previous close of 5.89% on Friday.
The benchmark five-year interest rates were trading 5 basis points lower at 5.04% from its previous close of 5.09% on Friday.