Bond yields ended higher as despite the worse condition due to COVID-19 which impacted economic growth, the net direct tax collection has doubled to over Rs 2.49 lakh crore so far this fiscal, mainly driven by personal income tax and advance tax mop up.
In the global market, U.S. Treasury yields climbed on Friday, halting an eight-day price rally that was fueled in part by worries the economic recovery had already peaked and was showing signs of faltering amid a surge in coronavirus infections in many places around the globe. Furthermore, oil prices were little changed in early Asian trade as an impasse in talks among key producers to raise output in coming months kept supplies tight, offsetting concerns about coronavirus' impact on the global economy.
Back home, the yields on new 10-year Government Stock ended 4 basis points higher at 6.22% from its previous close of 6.18% on Friday.
The benchmark five-year interest rates ended 2 basis points higher at 5.75% from its previous close of 5.73% on Friday.