Bond yields traded higher on Monday as Reserve Bank of India (RBI) has permitted exporters to bring proceeds of their shipments in 15 months as against the prevailing timeframe of 9 months. The changes have been made following amendments to the Foreign Exchange Management (Export of Goods & Services) Regulations.

In the global market, the 10-year Treasury yield rose on Friday as investors weighed the interest rate outlook for the Federal Reserve. Furthermore, oil prices settled more than 2 per cent higher on Friday as Russia's port of of Novorossiisk halted oil exports following a Ukrainian drone attack that hit an oil depot in the Russian energy hub, stoking supply concerns.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.19% from its previous close of 6.17% on Friday.

The benchmark five-year interest rates were trading 1 basis point higher at 6.53% from its previous close of 6.52% on Friday.