Bond yields traded flat on Monday amid cautiousness as India’s exports contracted by 22 per cent, the steepest decline in the last three years, to $32.97 billion in June on account of global demand slowdown, especially in the Western markets like the US and Europe.
In the global market, U.S. Treasury yields climbed on Friday, reversing some of the sharp declines seen over the last two sessions on the back of cooler-than-expected consumer and wholesale inflation prints. Furthermore, Oil prices fell more than a dollar a barrel on Friday as the dollar strengthened and oil traders booked profits from a strong rally, with crude benchmarks recording their third-straight weekly gain.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.08% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.05% from its previous close of 7.06% on Friday.