Bond yields edged lower on Monday with report that foreign investors pulled out domestic equities worth Rs 6,300 crore in April, (till April 26) on concerns over tweaks in India's tax treaty with Mauritius and sustained rise in US bond yields. Data with the depositories showed this came following a whopping net investment of Rs 35,098 crore in March and Rs 1,539 crore in February.
In the global market, The U.S. 10-year Treasury yield fell Friday as traders parsed the closely watched inflation data released earlier in the day. Furthermore, oil prices settled higher on Friday, garnering support from tensions in the Middle East, but a strong dollar and U.S. inflation data quashed hopes that the Federal Reserve would cut interest rates soon, giving prices a ceiling.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.18% from its previous close of 7.19% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 7.20% on Friday.