Bond yields traded flat on Monday as traders were concerned with report that S&P Global Ratings retained India's growth forecast for current fiscal at 6 per cent citing slowing world economy, rising risk of subnormal monsoons and delayed effect of rate hike. It sees the recent spike in vegetable price inflation as being temporary, but revised up the full fiscal retail inflation forecast to 5.5 per cent, from 5 per cent earlier, on higher global oil prices.
In the global market, U.S. Treasury yields were higher on Friday as investors considered what could be next for interest rates and the economy and awaited fresh economic data due this week. Furthermore, Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.15% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.17% from its previous close of 7.18% on Friday.