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Bond yields trade lower on Thursday

26 Jul 2018 Evaluate

Bond yields edged lower on Thursday, on sustained demand from corporates and banks. Some support also came with a report from Commerce and Industry Minister Suresh Prabhu’s statement that India's exports would register healthy growth rates in the coming months and are expected to touch $350 billion in 2018-19.

In the global market, US Treasury yields hits session highs across maturities on Wednesday afternoon after President Donald Trump and European Commission President Jean-Claude Juncker announced they had agreed to work on lowering trade barriers at a meeting in Washington. Furthermore, Brent crude led oil prices higher, extending gains into a third day after Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane and as data showed US inventories fell to a 3-1/2 year low.

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.77% from its previous close of 7.79% on Wednesday. 

The benchmark five-year interest rates were trading 2 basis points lower at 7.92% from its previous close of 7.94% on Wednesday.