Bond yields traded lower on Tuesday, as traders were getting support with Finance Minister Arun Jaitley’s statement that the depreciation of rupee to a combination of global factors, including trade war and internal policy decisions of the United States.
In the global market, US long-term Treasury yields inched up on Monday but came off four-month highs as investors returned to buy government debt after key technical levels were hit as global trade uncertainty persisted. Furthermore, Oil markets dropped as the latest escalation in the Sino-US trade war clouded the outlook for demand, although concerns over tightening supply offered prices some support.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 8.07% from its previous close of 8.10% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 8.18% from its previous close of 8.15% on Monday.
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