Bond yields traded flat on Monday after the Reserve Bank of India said in its latest monthly bulletin that the Indian economy remains resilient despite formidable global headwinds and amidst fears of a recession. The bulletin said that in spite of geopolitical spillovers, 'There are sparks in the wind that ignite the innate strength of the economy and set it on course to becoming the fastest growing economy in the world, though besieged it might be by fears of recession'.
In the global market, U.S. Treasury yields were modestly lower on Friday as the market reassessed expectations over the Federal Reserve's tightening path, while data pointed to lower inflation expectations and economic activity holding up. Furthermore, Oil prices fell $1, cutting into gains from Friday, as attention turned back to rising COVID-19 cases in China and the prospect of lockdowns again reducing fuel demand in the world's top oil importing nation.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.43% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.19% on Friday.