Bond yields ended higher on Monday, as traders took some support with Chief Economic Advisor (CEA) K V Subramanian has said the government is open to coming out with more measures to boost the economy which has been hit by the second wave of the coronavirus pandemic.
In the global market, long-dated U.S. Treasury yields fell on Friday and the yield curve continued to flatten as market participants bet that the Federal Reserve will act sooner to clamp down on inflation pressures if they persist. Furthermore, Oil prices nudged up, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer.
Back home, the yields on new 10-year Government Stock ended 3 basis point higher at 6.03% from its previous close of 6.00% on Friday.
The benchmark five-year interest rates ended 4 basis points higher at 5.65% from its previous close of 5.61% on Friday.