Bond yields traded lower on Monday even after Reserve Bank said that India's forex kitty jumped $5.929 billion to $595.067 billion for the week ended June 2. The reserves had dropped for two consecutive weeks and declined by $4.34 billion to $589.14 billion in the previous reporting week.
In the global market, treasury yields turned higher on Friday as the market anticipates the Federal Reserve will pause its aggressive hiking of interest rates next week but maintain a hawkish stance as it remains on guard against high inflation. Furthermore, oil prices fell more than a dollar a barrel on Friday to record a second straight weekly decline, as disappointing Chinese data added to doubts about demand growth after Saudi Arabia's weekend decision to cut output.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.02% from its previous close of 7.03% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.96% from its previous close of 6.97% on Friday.