Bond yields were trading lower on Monday amid a private report stating that India’s economic activity cooled off at the start of the year as higher borrowing costs tempered demand at home and abroad, signaling more pain ahead as the global economy slows down.
In the global market, U.S. Treasury yields slipped on Friday, cooling off after a spike early in the day as concern over persistently high inflation and the prospects of tighter Federal Reserve policy for longer grew. Furthermore, oil prices slid on Friday and were on track for weekly losses as strong U.S. economic data heightened concern that the Federal Reserve will continue tight monetary policy to tackle inflation, which could hit fuel demand even as crude stockpiles grow.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.37% from its previous close of 7.38% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.34% on Friday.