Bond yields traded lower on Monday amid foreign Portfolio Investors (FPIs) selling spree continued as they dumped Indian equity worth over Rs 5,800 crore in November so far on rising interest rates and geopolitical tensions in the Middle East.
In the global market, the 10-year U.S. Treasury yield was little changed on Friday as investors considered what could be ahead for inflation and monetary policy following comments from Federal Reserve Chair Jerome Powell. Furthermore, oil prices gained about 2% on Friday as Iraq voiced support for OPEC+'s oil cuts ahead of a meeting in two weeks and as some speculators covered massive short positions ahead of weekend uncertainty.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.28% from its previous close of 7.30% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.32% on Friday.
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