Bond yields traded lower on Monday after Care ratings’ latest survey stated that amid a raging second wave of COVID-19 and subsequent restrictions on business activities imposed by several states, economic recovery is beginning to lose steam and the country's GDP growth is likely to be below nine per cent for the current fiscal.
In the global market, Treasury yields slid on Friday after U.S. retail sales unexpectedly stalled in April as the boost from government stimulus checks faded and bond investors heeded the Federal Reserve's view that a jump in inflation will be temporary. Furthermore, oil prices edged lower as the recovery of a major U.S. pipeline network eased concerns over supply and a new wave of COVID-19 restrictions in Asia fuelled fears of lower demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 5.97% from its previous close of 5.98% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.56% from its previous close of 5.57% on Friday.