Bond yields ended lower even after India's manufacturing sector activities witnessed the strongest rate of growth in three months in July amid improved demand conditions and easing of some local COVID-19 restrictions. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 48.1 in June to 55.3 in July, pointing to the strongest rate of growth in three months.
In the global market, U.S. Treasury yields fell on Friday, as softer-than-expected inflation data fed the view that the Federal Reserve could delay its exit from quantitative easing, while investors also worried about the raging Delta coronavirus variant. Furthermore, oil prices fell by more than $1 on worries over China's economy after a survey showed growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by a rise in oil output from OPEC producers.
Back home, the yields on new 10-year Government Stock ended 1 basis point lower at 6.19% from its previous close of 6.20% on Friday.
The benchmark five-year interest rates ended 1 basis point higher at 5.73% from its previous close of 5.72% on Friday.