Bond yields ended lower amid reports that foreign portfolio investors (FPIs) have pulled out Rs 4,515 crore from the equities segment in the first half of July as they turn cautious towards the Indian market.
In the global market, U.S. Treasury yields pared most of Friday's gains as doubts about the economic recovery's strength and dovish Federal Reserve policy were seen as likely to cap yields in the near-term, even after U.S. retail sales unexpectedly rose in June. Furthermore, oil prices fell more than 1%, hit by an agreement over the weekend within the OPEC+ group of producers to boost output after an earlier pact fell apart due to objections from the United Arab Emirates (UAE).
Back home, the yields on new 10-year Government Stock ended 1 basis point lower at 6.12% from its previous close of 6.13% on Friday.
The benchmark five-year interest rates ended 3 basis points lower at 5.65% from its previous close of 5.68% on Friday.