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Bond yields trade higher on Friday

04 Jan 2019 Evaluate

Bond yields traded higher on Friday, as traders remain cautious with a private report stating that new project investments have been the lowest in 12 quarters at about Rs 1 lakh crore for the three months ended December 31, 2018, indicating a slowdown in the Indian economy.

In the global market, US two-year Treasury note yield dropped below 2.4 percent on Thursday, reaching parity with the federal funds effective rate for the first time since 2008.Furthermore, Oil prices fell after the United States followed most other major economies into a manufacturing downturn, although supply cuts by producer club Organization of the Petroleum Exporting Countries (OPEC) kept declines in check.

Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.47% from its previous close of 7.43% on Thursday.

The benchmark five-year interest rates were trading 4 basis points higher at 7.37% from its previous close of 7.33% on Thursday.

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