Bond yields traded lower on Monday despite foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 12,266 crore in the Indian market in the first five trading sessions of February, as positive sentiment post-Union Budget 2021 sparked a rally in investment.
In the global market, the Treasury yield curve steepened on Friday as yields on the benchmark10-year note soared to levels not seen in nearly a year while two-year yield shit record lows after U.S. jobs data strengthened expectations of more stimulus spending from Washington. Furthermore, oil prices rose, with Brent futures nearing $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus measures to boost demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.04% from its previous close of 6.07% on Friday.
The benchmark five-year interest rates were traded flat with its previous close of 5.58% on Friday.