Bond yields traded lower on Monday, after Reserve Bank of India (RBI) data showed that country’s foreign exchange reserves declined by $2.415 billion to stand at $576.869 billion in the week ended April 2. In the previous week ended March 26, the reserves had decreased by $2.986 billion to $579.285 billion.
In the global market, U.S. Treasury yields rose on Friday after higher-than-expected producer prices data for March that showed inflation perked up, in line with other upbeat reports that suggested the world's largest economy was on a stable path to recovery from the pandemic. Further, oil rose amid hopes that fuel demand is picking up in the United States as the summer driving season approaches and the rollout of COVID-19 vaccinations there accelerates, though increasing case numbers in other countries are set to cap gains.
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 flat with its previous close of 5.58% on Friday.