Bond yields edged lower on Monday on sustained demand from corporates and banks. Bond sentiments got some support with Revenue Secretary Hasmukh Adhia’s statement that implementation of the ‘game-changing’ goods and services tax (GST) regime will cut inflation by around 2 per cent and it will also create buoyancy in the economy through better compliance and ease of doing business.
In the global market, U.S. Treasury yields fell on Friday as investors worried that allegations against U.S. President Donald Trump would disrupt efforts to cut taxes and increase spending. Furthermore, oil prices rose, supported by reports that an OPEC-led supply cut may not only be extended into next year but might also be deepened to tighten the market and prop up prices.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 6.81% from its previous close of 6.86% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.00% from its previous close of 7.02% on Friday.