Bond yields traded lower on Monday after India's manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis.
In the global market, U.S. Treasury yields fell on Friday as investors bought bonds for month-end portfolio rebalancing, countering expectations of higher inflation as businesses reopen from COVID-related shutdowns. Further, oil prices climbed as optimism about a strong rebound in fuel demand in developed countries and China in the second half of the year overshadowed growing concerns of a full lockdown in India to curb the COVID-19 pandemic.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.00% from its previous close of 6.03% on Friday.
The benchmark five-year interest rates were trading 15 basis points higher at 5.57% from its previous close of 5.42% on Friday.
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