Bond yields edged lower on Tuesday, on sustained demand from corporates and banks. Some support also came with Finance Minister Piyush Goyal’s statement that India will be able to restrict the fiscal deficit below the budgeted level of 3.3 per cent of GDP in 2018-19, which has hit 55 per cent of the annual target in the first two months of the financial year.
In the global market, the U.S. yield curve held near its flattest level in over a decade on Monday as investor’s preferred longer-dated U.S. government debt over short-dated issues on worries that a global trade war would slow inflation and business activity worldwide. Furthermore, oil prices climbed after Libya declared force majeure on some of its supplies, although an overall rise in OPEC output and an emerging slowdown in demand held back markets.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.88% from its previous close of 7.91% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 8.02% on Monday.
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