Bond yields traded flat on Monday after the second wave of Covid-19 pandemic had hit the country hard, which led the Reserve Bank of India (RBI) reduce its Gross Domestic Product (GDP) growth projection by 1 per cent in the current financial year (FY22), NITI Aayog Vice-Chairman -- Rajiv Kumar has said he is confident that every organisation will revise their growth projections to 10-10.5 per cent once they witness the growth rate by October.
In the global market, U.S. Treasury yields tumbled and the yield curve flattened on Friday after job gains in May fell short of expectations, calming fears that a roaring economy could lead to a quicker tightening of monetary policy. Furthermore, oil pulled back after hitting fresh multi-year highs, as investors awaited the outcome of this week's talks between Iran and world powers over a nuclear deal that is expected to boost crude supplies.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.02% on Friday.
The benchmark five-year interest rates were trading 4 basis points lower at 5.55% from its previous close of 5.59% on Friday.