Bond yields ended lower on Monday after foreign portfolio investors (FPIs) have turned net sellers in Indian market by pulling out Rs 3,825 crore in October so far. In the past two months, huge buying was witnessed in the debt segment when FPIs had Rs 13,363 crore in September and Rs 14,376.2 crore in August.
In the global market, Yields on longer-dated U.S. Treasuries slid after the benchmark 10-year note breached 1.7% overnight, while key market gauges of rising consumer prices kept pressing higher on concerns about inflation. Furthermore, oil prices rose, extending pre-weekend gains, with U.S. crude hitting a seven-year high as global supply remained tight amid strong demand worldwide as economies recover from coronavirus pandemic-induced slumps.
Back home, the yields on new 10-year Government Stock were ended 1 basis point lower at 6.35% from its previous close of 6.36% on Thursday.
The benchmark five-year interest rates were ended 2 basis points lower at 5.84% from its previous close of 5.86% on Thursday.