Bond yields traded lower on Monday, amid former RBI Governor Raghuram Rajan cautioned that ‘drastic changes’ in India's monetary policy framework can upset the bond market as the current system has helped in containing inflation and promoting growth.
In the global market, U.S. Treasury prices plunged on Friday, pushing yields on benchmark 10-year notes to their highest in more than a year, on continued U.S. economic optimism and increased debt supply expectations with the approval of the $1.9 trillion coronavirus stimulus package.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.20% from its previous close of 6.23% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.84% from its previous close of 5.87% on Friday.