Bond yields traded lower on Monday even after investments in Indian capital through participatory notes (P-notes) rose to Rs 95,501 crore till December-end and experts believe that flow is expected to be flat to negative next month.
On the global front, U.S. Treasury yields fell across the curve on Friday on month-end buying by investors to rebalance their portfolios. Furthermore, oil rose 1%, hovering near 7-year highs hit in the previous session, amid concerns over tight supply as well as geopolitical tensions in Eastern Europe and the Middle East.
Back home, the yields on new 10 year Government Stock traded 4 basis point lower at 6.72% from its previous close of 6.76% on Friday.
The benchmark five-year interest rates were traded 8 basis points lower at 6.04% from its previous close of 6.12% on Friday.