Bond yields traded lower on Monday with former chief economic adviser Arvind Virmani statement that the Indian economy is likely to contract in the range of 5-7.5 per cent this fiscal (FY21) but will see a growth of 9 to 11 per cent in FY 2021-22.
In the global market, U.S. Treasury yields fell on Friday after retail sales data came in below economists' expectations and following President-elect Joe Biden's proposed $1.9 trillion stimulus program. Furthermore, oil prices fell, extending losses that last week ended a rally driven by production cuts and strong Chinese demand, with the market's recovery outlook being called into question as coronavirus infections rise.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 5.95% from its previous close of 5.98% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.30% from its previous close of 5.33% on Friday.